Your transaction data needs to contain certain fields in order to get the best economic nexus analysis. Check out our quick formatting guidelines below and review our sample template.
Invoice-level file (i.e. each row represents a unique transaction)
The first row is the column header and includes:
For best results, also include the following columns:
On 6/21/2018, the U.S. Supreme Court overturned physical presence nexus, the primary determining factor for whether a business was obliged to collect and remit sales tax on behalf of a state, labeling it “unsound and incorrect” for today’s economy. In doing so, SCOTUS affirmed South Dakota’s concept of economic nexus as more appropriate for modern commerce. Since then, most states with sales tax laws have implemented or adapted South Dakota’s model of using revenue and transaction volume as threshold tests for determining economic nexus.