Physical presence nexus
In accounting, physical presence nexus means the connection with a state created by being in it — an office, a shop, inventory, employees — which obliges a seller to collect its sales tax from the first sale. Before South Dakota v. Wayfair (2018) it was the only basis on which a state could require collection.
Authority: South Dakota v. Wayfair, 585 U.S. 162 (2018) (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- economic nexus (created by sales alone)
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Tax
Defined in Lexicon. This page is generated from that document, so the two can't disagree.