Unsure where you owe sales or use tax
Run Your Nexus Risk CheckCalifornia economic nexus is established when a business exceeds 500000 dollars in total sales into California during the current or prior calendar year.
Once this threshold is exceeded, the business is generally required to:
Economic nexus applies even if the business has no physical presence in California.
Run Your Nexus Risk CheckCalifornia’s economic nexus rule requires remote sellers to register once total sales into the state exceed 500000 dollars in a calendar year.
This includes:
The threshold is based on revenue, not transaction count.
California generally measures total sales revenue into the state.
This may include:
Understanding what counts toward the threshold is critical before registering.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckRegistration is typically required once the 500000 threshold is exceeded in the current or prior year.
After nexus is established, businesses must:
Failing to register after crossing the threshold may create back tax liability.
Economic nexus is revenue based.
Physical nexus may arise from:
A business may have nexus even if it never exceeds the 500000 economic threshold.
Remote Employees and Nexus California | Amazon FBA Nexus California
If your business crossed the threshold but did not register, you may have exposure for prior periods.
This can result in:
In certain cases, voluntary disclosure may reduce exposure.
California Voluntary Disclosure Agreement | Sales Tax Penalties and Interest California
Crossing the economic nexus threshold triggers registration and collection requirements. If you are unsure when you crossed the threshold, evaluate exposure before registering.
Run Your Nexus Risk CheckDetermine your California nexus position before filing.