Tax Nexus
/ˈtæks ˈnɛksəs/
Definitions
- (n.) A legal connection between a taxpayer and a state or jurisdiction that obligates the taxpayer to collect or pay tax in that jurisdiction.
A company has a tax nexus in a state if it has sufficient physical or economic presence there.
Forms
- tax nexus
Related terms
See also
Commentary
Determining tax nexus is critical for assessing tax obligations, especially with evolving standards in e-commerce and remote sales.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.