When it comes to activities for accountants and small business clients, exposure to unexpected sales and use taxes in jurisdictions may be likely if they think they are not required to report. Here are 10 common nexus-creating activities for sales and use tax.
- Ownership of real property in a jurisdiction (stores, warehouses, offices, etc.)
- Ownership of personal property (machinery, equipment, etc.)
- Leasing of real property (stores, warehouses, etc.)
- Leasing of personal property into a state (machinery, equipment, etc.)
- Maintaining of an inventory, whether consigned, stored or carried by sales representatives
- Travel of employees into a state to conduct sales, training, deliveries, installations, repairs, etc.
- Use of independent sales or manufacturer's representatives, even if they are not exclusive
- Use of sub-contractors for repairs, maintenance, installations, etc.
- Delivery of property in seller-owned vehicles
- Allowing employees to telecommute or use a home office
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