Multi-State Nexus: What Triggers a Sales and Use Tax Obligation in a New State
A business doesn’t have to open an office in a new state to owe sales and use tax there. Nexus, the connection that creates a filing obligation, can be triggered by a single remote employee, a warehouse of inventory, or enough sales volume through an online store. Growth is usually treated as a revenue story. It’s also a tax exposure story, and the two often move at different speeds.
Reverse Sales Tax Audit: How to Recover Overpaid Sales and Use Tax
Sales and use tax rules vary by state, by product classification, and by how a purchase is applied within the business, which creates frequent room for error. Tax gets charged on an exempt purchase, a vendor applies the wrong jurisdiction’s rate, or an exemption certificate lapses without anyone flagging it. A reverse sales tax audit identifies these overpayments in the purchase history and recovers them through the refund process.