# Physical presence nexus

> Physical presence nexus — 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.

Source: https://lopifi.com/glossary/physical-presence-nexus
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- economic nexus (created by sales alone)

- **Category:** Tax
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** inventory, basis, small-business-health-options-program