Economic Nexus Nuances

You are not alone if you are wondering if all sales combined or sales per channel should be factored into determining economic nexus in a state. The short answer is that states consider your business’s total sales and many of the states include sales via marketplaces in the determination of whether you have economic nexus (even if the marketplace collects sales tax on your behalf).

As an example, for a business selling via Shopify and Amazon – even though Amazon collects sales tax on your behalf, most states would include ALL of your sales in the calculation of whether you have met or exceeded the state’s economic nexus threshold.

As always, sales tax varies by state and if you have questions about economic nexus thresholds, please reach out to our team or contact the individual state.