Market Overview

TaxMatrix Launches Free Economic Nexus Calculator

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Remote sellers can test state threshold for economic nexus.

TaxMatrix, a leading sales and use tax consultancy firm, today announced
the launch of its Economic Nexus Calculator as part of a new
website rollout designed to aid remote sellers deal with the effects of
the Wayfair decision.

On June 21, 2018, the physical presence law established by Quill was
overturned by the Supreme Court (Wayfair v. South Dakota),
affecting thousands of companies worldwide that sell into U.S. states by
which they have no presence.

Remote sellers include E-commerce, Software as a Service, Mail Order,
and essentially any company that may have previously registered in
states with a brick-and-mortar or sales agent presence, but sell in
other states – online and offline.

The Wayfair decision creates a complex nexus landscape because states do
not have to follow the same provisions as South Dakota, the victor in
the case. Withstanding state legislation where many states have either
passed their own provisions or indicated provisions forthcoming, there
are two indicators that trigger economic nexus: sales volume and number
of sales transactions per state over a given year.

Companies looking for answers now take a quick and free test to see
where they may be exposed by downloading the TaxMatrix Economic Nexus
Calculator
. The Calculator is an Excel spreadsheet where companies
can input their sales volume and number of transactions in a given state
to see if they meet the threshold for economic nexus. An additional
column (updated when new information is announced) lists the most
current date when the state provision takes effect.

"This calculator is a good test for companies, especially when they do
not have the resources for sales tax," said Melissa Myers, VP of
Operations, who published a White Paper on the subject. "States have
other work-around nexus laws (Click-Through, Marketplace, Use Tax
Reporting), so while it presents a snapshot for Economic Nexus, there
may be other factors at play to determine whether the Company should
file a state registration."

TaxMatrix can perform Nexus Studies and file State Registrations and
Voluntary Disclosure Agreements, in addition to other core services for
Audit Defense, Refund Recovery and Custom Tax Matrices. The Company
recently launched its S.O.S. (Sales & Use Tax Outsourced
Support) service for ad hoc tax support on a retainer basis.

Companies interested in using the Economic Nexus Calculator can go to www.taxmatrix.com
or you can contact us at nexus@taxmatrix.com
for more information.

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