US Sales Tax Nexus: Automated Compliance Post-Wayfair
The Complex Web of American Sales Tax
Unlike countries with a flat national VAT, the United States has over 10,000 local sales tax jurisdictions. Following the landmark Wayfair Supreme Court decision, businesses selling across state lines must track their "economic nexus" in each state individually.
Understanding Economic Nexus
- Transaction & Revenue Thresholds: Most states enforce tax collections once a seller exceeds $100,000 in sales or 200 separate transactions in that state.
- Exemption Certificates: Tracking and verifying wholesale tax exemption certificates securely.
- Reporting: Filing different tax reports for municipal, county, and state tax bodies.
Aurex US Tax Localization
Aurex integrates automated zip-code based tax rate lookups and flags when state transaction levels approach compliance thresholds, eliminating tax exposure.