Sales tax and nexus

Rates by jurisdiction, economic-nexus thresholds tracked as you approach them, and returns prepared by state.

Taxes → Nexus and Taxes → Returns.

Rates are held per jurisdiction and combine state, county, city and special district. A customer address resolves to the right combined rate; items can be taxable, exempt, or taxable at a reduced rate.

Exemption certificates are stored per customer with an expiry date. An expired certificate stops being applied and appears on the Expiring Certificates report — an expired certificate you are still honouring is a liability you have taken on.

Economic nexus is the part that catches people out. Every state has its own threshold — a sales figure, a transaction count, or either. IntuBu tracks your rolling activity per state and warns as you approach a threshold, not after you have crossed it.

Returns: prepare by state and period, with gross sales, exempt sales, taxable sales and tax due, reconciled to the sales tax payable account. Filing the return posts the liability clearing entry.