Physical Nexus

Background

With Zamp, you won't need to worry about calculating your sales in each state to keep track of when you reach the state's economic nexus threshold -- we're always monitoring that for you!

However, economic nexus is only one of the reasons for why you would need to register to collect and remit sales tax in a given state. There is also nexus created through a physical presence in a state, known as physical nexus.

When you have physical nexus in a state, you need to register for, collect, and remit sales tax no matter how many sales you make in that state. Moreover, many of the reasons your company may achieve physical nexus in a state will be invisible to Zamp, so you need to share with your Zamp team when one of these events occurs.

Events that may create Physical Nexus in a state

1) You have an office, retail outlet, or other place of business in the state

If you have a satellite office, a retail store, or another location where you conduct business, you qualify for physical nexus.

2) You have an employee in the state

If you have an employee -- whether its in sales, distribution, service, or anything else -- you qualify for physical nexus.

3) You have tangible personal property in the state

If you have a real estate, warehouses, equipment, or inventory, you qualify for physical nexus.

What to do if you qualify for physical nexus in a state

If an event occurs that results in you qualifying for physical nexus in a state -- such as purchasing real estate, opening an office, or hiring a remote employee -- you should let your Zamp team know. While we'll be monitoring your sales for economic nexus, we otherwise wouldn't know if you hire someone in a new state for which you haven't previously registered.

Once you let us know, we can register and file for you, just as if you reached economic nexus. If you're not sure who to contact, you can always send us an email at registration@zamp.com!