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Our company is incorporated in NY but has location in other state. What about sales tax?

Full Question: Our company is Incorporated in New York State but we have a location in Virginia, are we required to charge our Virginia customers sales tax on the taxable portion of our sales?

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Diane Yetter photoThe determination as to whether you are required to collect sales tax on sales that you make in other states depends on whether you have established nexus in that state and then whether the products or services you sell are subject to sales tax in that state. If you sell goods to customers in other states that impose a general sales tax like Virginia, then you have to determine whether you have established nexus in that state. Generally, nexus is established through a substantial physical presence in the state either through people or property on either a permanent or temporary basis and can include activities performed by agents operating on your behalf. What establishes nexus does vary by state and your activities in the state. If you are deemed to have nexus in the state to which you are selling taxable goods or performing taxable services, then you are required to collect that state's tax on all taxable transactions into that state. In this case, you have a physical location in Virginia, which establishes nexus for you in that state. As such, you are required to charge sales tax to your Virginia customers on the taxable portion of your sales to them. We would be happy to help you determine where you have nexus.

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