TaxJar

Improved Handling of Mid-Period Nexus Establishment

by Kevin Reeth

TaxJar Icon 2015

While this post may not have the catchiest headline, it’s big news for any TaxJar customers who registered with a state (and entered the corresponding “nexus established” date in TaxJar) during the middle of a filing period.

With a new release to better support customers in this situation, TaxJar will now respect those dates in that state’s Sales Tax Report, as well as in the Detailed Sales Tax Analysis report.

What this Means for TaxJar Customers

  1. When you go to file sales tax, your TaxJar state reports will only show you your sales tax transaction information on and after the date you told us you established nexus in that state
  2. If you use AutoFile to file sales tax in a state, TaxJar will only AutoFile transactions that took place on or after the date you told us you established nexus in that state

What You Can Expect to See in TaxJar

In the state-specific Sales Tax Reports, you can expect to see the following behavior going forward:

1. If you are looking at a filing period which contains the date that nexus was established, only those sales on or after the date will be shown. This applies to both the “Actual” and “Expected” tabs.

nexus_established_during

2. If you look back at a prior period, before nexus was established, you will see no sales or tax collected.

before_nexus_established

3. If you are looking at a filing period that begins after the date nexus was established, everything will look the same – you’ll see full sales and tax collected information.

The same general behavior will also occur in the Detailed Sales Tax Analysis report. If the date range you select spans a period of time that may include a “nexus established” date for a particular state, the total sales and both actual and expected values will only include transactions that occur after the nexus date for that state.

In addition, for AutoFile customers, we will only file the sales and tax collected amounts in a given filing period that occur after the nexus established date.

Other Important Info

But what if you want to see all sales in a period, even those before you established nexus?

In this case, we have two options for you:

  1. Look to your e-commerce carts to run a report for the period.
  2. You may change the nexus established date to an earlier time period and TaxJar will re-summarize your data, which will allow your Sales Tax Reports and Detailed Sales Tax Analysis report to include earlier transactions. But remember that changing the nexus date changes your tax liability. You may want to use caution with this work-around.

Do you have questions or comments about TaxJar and mid-period nexus? Let us know by emailing support@taxjar.com.

  • Follow the Cycles

    I’m looking at my Wisconsin page – It shows our nexus correctly starting in early December 2015 – However, the total sales figures are showing for the entire year. It looks like I may have to go in and figure this manually via my transaction report? It’s a destination state so I will also have to look up all the counties. Or..is this a bug?

Start your 30 day free trial of TaxJar. No credit card required.