Physical presence nexus

Physical presence nexus means a seller has an employee physically working and performing duties for the seller in the jurisdiction. An employee does not need to be domiciled in the jurisdiction to create nexus, traveling to the jurisdiction for any meaningful period of time is often sufficient to create a filing requirement. Physical presence nexus may also be triggered by owning or leasing real property or other assets in the jurisdiction.

It is important to note that physical presence nexus can be triggered by an employee of a seller but also by an agent or independent contractor acting on behalf of a seller. For sellers of physical goods there may be some exceptions to this, but for SaaS companies, having an employee in the jurisdiction doing work for the company is typically all that is required to trigger physical nexus.