Businesses must collect sales tax only in states where it has sales and use tax nexus.

Question

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Sales tax nexus refers to the connection between a business and a state that allows the state to require the business to collect and remit sales tax. Businesses must only collect sales tax in states where they have sales tax nexus, which can be established through various factors such as physical presence, economic activity, or affiliate relationships.

Businesses Must Collect Sales Tax Only in States Where It