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Sales Tax Nexus - What Is It?

SAP Business One users have a company on their side to keep up with tax law

SAP Business One users have a company on their side to keep up with tax law.

The folks over at Sabrix never cease to amaze me, what with their obsession with everything taxes. Why would intelligent people do that to themselves? I better not ask to much, or they could realize it and stop doing all the dirty work for us.

Sabrix puts out a great newsletter and blog that provides updates to tax law changes and general information about taxes.

If you are a company selling on the web, and are unaware of the changes happening in Congress, checking out Sabrix's blog would be a good idea.

Here's a recent excerpt about Nexus, an always misunderstood concept that is sure to be at the forefront of many E-commerce site issues in the future.

A company is headquartered in State X and manufactures a product sold all over the country. It has a salesforce (most of whom are manufacturer’s reps) that have territories throughout the U.S., and all the sales force does is take orders. This company, through its sales force, sells to dealers and retailers in State Y, who in turn sell to the public and collect the sales tax at the time of sale. The company sells a small amount of accessories to it main product via the internet or by phone. It has no physical presence in State Y, no office, no warehouse, etc. Should it have to collect sales tax when selling these accessories via internet or phone I mentioned above?

To check out the full post:  http://blog.sabrix.com/blog/sabrix/0/0/nexus-in-arkansas

Thanks to the folks at Sabrix for helping all of us out in following the tax law.

Read the original blog entry...

More Stories By Brad Windecker

As the President and CEO of Orchestra Software, I lead a talented team of bright people with the unified mission of helping growing industries run better. Orchestra builds industry vertical ERP software that is highly specific to the needs of the industries we serve. This strategy has enabled Orchestra to double or triple in size and revenue every year.