Sales tax and VAT terms for global finance teams
A comprehensive glossary of expert definitions and practical insights designed specifically for modern software and SaaS companies.
Whether you’re dealing with bundled transactions, trying to understand nexus thresholds, or managing cross-border digital service taxes, use this glossary to stay compliant and up to date while scaling globally.
Terms
Terms
Nexus
Nexus refers to the connection that a seller has with a jurisdiction. When a seller has nexus with a jurisdiction, it means their connection is sufficient that the jurisdiction and its local municipalities can require the seller to register for taxes and impose a sales tax collection responsibility on the seller.Â
There are two types of nexus relevant to SaaS that a jurisdiction may rely on to impose a tax obligation—see physical presence nexus and economic nexus.
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