This article is for GTD clients who use New GTD Cloud. If you use the legacy GTD product, see Add or edit your company's nexus (Legacy GTD Cloud).
A business is required to collect and pay taxes in states where it has a tax obligation/nexus. It’s important to tell Global Tax Determination where you have these obligations, as the software will not calculate taxes for locations where nexus is not configured.
Adding or editing a nexus
- Log in to Global Tax Determination and go to Settings > Nexus and Registrations.
- Select your country from the dropdown menu. A list of the jurisdictions in that country will appear.
- Find the jurisdiction where you have tax obligation. If you're adding a new tax obligation, the status will be No Nexus. If you're editing an existing nexus, the status will show the type of nexus currently assigned to that jurisdiction.
Some jurisdictions are set to always inherit the nexus status of the jurisdiction above them (e.g. a state jurisdiction will have the same nexus status as the country, a local jurisdiction will have the same nexus status as the state, etc.) These jurisdictions appear grayed out and cannot be selected or edited.
- Click on the jurisdiction status and select your nexus status from the dropdown menu.
- If the jurisdiction is outside of the United States, you must add a registration number. Click + Add Number and enter the registration number, then click Enter.
Registration numbers are optional for jurisdictions within the United States. - Once you've finished, click Save Changes.
Adding a nexus for an independent jurisdiction
When you add a nexus for a jurisdiction, GTD will automatically include most local taxing jurisdictions in that nexus. However, it won't assume that your company has tax obligation in an independent jurisdiction. Also called home-rule jurisdictions, independent jurisdictions have their own nexus rules. If your company has tax obligation in one of these local jurisdictions, you need to add it manually.
To add a nexus for an independent jurisdiction, follow these steps:
- On the Nexus and Registrations page, find the jurisdiction that this local jurisdiction falls under.
- Click Locals.
- A list of local jurisdictions will appear. Find the independent jurisdiction where you have tax obligation and follow steps 5-6 in the Adding or editing a nexus section.
Sovos releases a list of new independent taxing jurisdictions at the end of every month. To learn how to download this list, see How to download a list of new independent taxing jurisdictions.
Bulk editing US jurisdictions
You can add or edit multiple jurisdictions in the United States at the same time using the bulk edit feature.
- On the Nexus and Registrations page, select the box next to each state you want to edit nexus for, then click the Bulk edit button.
- The Bulk edit panel will appear. Select the nexus type from the dropdown menu.
- By default, the nexus status you select will apply to all local jurisdictions in these states. If you don't want to apply this status to the local jurisdictions, select Don't apply; otherwise, leave Apply to all selected.
- Click Save to keep your changes.