Unsure where you owe sales or use tax or dealing with legacy compliance pain?
Check Your ExposureAnswers to common questions about sales tax and use tax compliance software, including nexus, exposure, filing decisions, integrations, cleanup, enterprise scale support, and how the TaxMap platform helps businesses move from uncertainty to compliant action.
These FAQs describe how sales tax and use tax concepts are handled within the TaxMap compliance software platform.
What is sales tax nexus and why does it matter?
sales tax nexus determines when a business is legally required to register, collect, and remit sales tax in a state. Nexus can be created through physical presence, economic activity, or certain relationships such as affiliates or marketplaces. Once nexus exists, compliance obligations may apply.
What is economic nexus?
Economic nexus is triggered when a business exceeds revenue or transaction thresholds in a state, even without physical presence. Thresholds vary by state and change over time. Economic nexus is now the most common trigger for online, SaaS, and service businesses.
If I sell online, do I automatically have nexus everywhere?
No. Online sales alone do not create universal nexus. Obligations depend on state specific thresholds, transaction volume, product taxability, and timing. TaxMap evaluates your actual data against these rules.
Do marketplaces handle all sales tax obligations?
Not always. Marketplaces may collect and remit tax in certain states, but sellers can still have registration, reporting, or use tax obligations depending on the state and transaction type.
Can nexus exist even if I never registered?
Yes. Nexus often exists before registration. Registration is an action taken after obligations already exist.
What is use tax?
Use tax applies when sales tax was not collected on a taxable purchase and the buyer is responsible for remitting the tax. Use tax commonly applies to software, equipment, services, and out of state vendors. See use tax explained.
Does TaxMap identify use tax exposure?
Yes. The TaxMap compliance software platform analyzes purchase and transaction data to identify both sales tax and use tax exposure, not just revenue side activity.
Why use tax is often missed?
Use tax is missed because purchases are fragmented across systems, invoices arrive in inconsistent formats, and accounting tools rarely flag untaxed purchases automatically.
Is use tax only an enterprise problem?
No. Use tax affects businesses of all sizes and often grows quietly as companies scale.
What does sales tax and use tax exposure mean?
Exposure is potential liability from uncollected or unpaid tax obligations. Exposure does not automatically mean tax is owed, but it does require review and prioritization.
How far back can states assess tax?
Lookback periods vary by state and situation. Some states can assess multiple prior years. The TaxMap compliance software platform helps you understand scope before action.
What if my business already has exposure?
Many businesses prioritize jurisdictions and address exposure over time. The TaxMap compliance software platform helps you understand where action is required and where it is not, before filing or registration.
Does exposure always require immediate filing?
No. Timing and approach depend on jurisdiction, materiality, and risk. The TaxMap compliance software platform helps inform that decision.
Do I have to file if TaxMap identifies exposure?
No. The TaxMap compliance software platform provides clarity first. Filing decisions remain under your control.
Does TaxMap file sales tax and use tax returns?
The TaxMap compliance software platform supports filing for businesses that choose that path. Many customers also file internally, work with their CPA, or use third-party filing services.
Am I locked into a filing provider?
No. TaxMap does not require a specific filing provider or workflow.
Can I mix filing approaches by state?
Yes. Many businesses file differently by jurisdiction depending on complexity and risk.
What does TaxMap actually do?
The TaxMap compliance software platform analyzes transaction and purchase data, applies jurisdiction-specific rules, identifies sales tax and use tax exposure, and supports compliance execution when needed.
Does TaxMap replace legacy tax platforms?
Yes. TaxMap is built to replace slow, rigid legacy sales tax platforms with modern architecture and clearer compliance outcomes.
Does TaxMap support multi-entity and high-volume environments?
Yes. The TaxMap compliance software platform is designed for growing, mid-market, and enterprise businesses with complex data and scale requirements.
Can TaxMap be used by CPAs and advisors?
Yes. TaxMap produces structured, auditable outputs designed to be shared with CPAs, advisors, and internal teams.
Do I need integrations to get started?
No. You can start with spreadsheets, exports, invoices, and PDFs.
What file formats does TaxMap support?
Common formats include CSV, XLS, XLSX, and PDF. Other formats can be reviewed during onboarding.
Are integrations available?
Yes. Integrations are available for accounting systems, billing platforms, and ecommerce environments when needed.
Does setup take months like legacy platforms?
No. The TaxMap compliance software platform is designed for fast onboarding without heavy configuration.
What does TaxMap compliance software pricing start at?
TaxMap Standard pricing starts at $199 per month. Pricing scales based on transaction volume, complexity, and automation needs. See pricing for details.
Who is the Standard plan for?
Growing businesses that want clarity on exposure before committing to complex compliance workflows.
Who uses Advanced or Enterprise plans?
Mid-market and enterprise businesses with higher volume, multiple entities, integrations, or automated filing needs.
Are there per-transaction or API fees?
No. TaxMap is not designed to nickel-and-dime customers on usage.
Is my data secure?
Yes. The TaxMap compliance software platform is built with enterprise security principles and purpose-limited data processing.
Does TaxMap sell or monetize customer data?
No. Customer data is used only to deliver compliance outcomes.
Can data retention be configured?
Yes. Retention and access controls can be discussed based on business requirements.
What is the first step to using TaxMap?
Most businesses start by checking exposure to understand where obligations may exist.
Do I need to talk to sales?
No. You can start directly and engage support only if needed.
What if I am still unsure?
The TaxMap compliance software platform is designed to help you understand before acting. Clarity comes first.
Check your exposure to see how the TaxMap compliance software platform identifies sales tax and use tax obligations before filing decisions are made.
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