I noticed I had taxes charged on a recent order, but not with previous orders. Why is that?Updated 9 months ago

Great question! Tax liability varies by sales volume in each state. Once we reach the nexus threshold in your state, we are obligated to charge taxes. Ecommerce storefronts, as a whole, must charge taxes based on nexus thresholds due to legal requirements for sales tax collection in different jurisdictions. Here’s a summary of why this is necessary:

1. Nexus Definition: Nexus refers to the connection or presence a business has in a state that requires it to collect sales tax. This can be established through physical presence (like offices or warehouses) or economic presence (like sales volume or transaction numbers).

2. Economic Nexus Laws: Many states have laws requiring businesses to collect sales tax if they meet certain sales thresholds, even if they don’t have a physical presence in the state. These thresholds are often defined by the amount of sales or number of transactions in the state.

3. Compliance: To comply with these laws, ecommerce brands must track their sales and transactions across different states. If they exceed a state’s nexus threshold, they are legally obligated to collect and remit sales tax for purchases made by customers in that state.