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 Legacy Global Tax Determination Cloud and click Manage.
- Go to Organization > Manage Tax Obligation.
- In Step 1, select the country and state from the dropdown menus.
- If you want to see all the sub-jurisdictions within the state, click Show.
- If you want to see a specific local jurisdiction, select the type of local jurisdiction from the Where... dropdown menu and enter the name of the jurisdiction, then click Show.
- In Step 2, select the Have Tax Obligation box next to the states where you have nexus, then select the registration status from the dropdown menu. You don’t need to enter a registration number for US taxing jurisdictions.
- Click Save.
We recommend that you check if new independent jurisdictions have been added to the states where you have nexus at the end of each month. You can download a list of new jurisdictions by following the instructions in this article.
Adding or editing a nexus for an independent jurisdiction
When you add a state nexus, Global Tax Determination will automatically include most local taxing jurisdictions. However, it won't assume obligation for independent jurisdictions. If you have nexus in an independent jurisdiction, you'll need to manually add it. You can also click Select All under Have Tax Obligation to add nexus for all local jurisdictions.