Quick tip: Spot hidden sales‑tax nexus with the Nexus Matrix
The Etsy Seller Sales Tax Nexus Kit includes a one‑page Nexus Matrix that maps common seller activities (sales volume, fulfillment method, inventory storage, and marketplace facilitation) to the nexus thresholds of each state. Use it like this:
- List your activities – Write down every state where you:
- Have inventory stored (own warehouse, FBA, or third‑party fulfillment).
- Exceed the state’s economic‑sales threshold (if you know the approximate yearly sales).
- Use Etsy’s “Etsy Ads” or other promotional tools that generate clicks from that state.
- Match each activity to the matrix – Find the row for the activity and read across to see which states trigger nexus for that activity.
- Mark the matches – Put a check‑mark in the corresponding column for every state that appears.
- Review the “Combined” column – If a state shows up in more than one row, you have multiple nexus triggers (e.g., both inventory and economic sales). Those states require you to register, collect, and remit sales tax.
- Export your list – Copy the checked states into a simple spreadsheet or the kit’s “Nexus Tracker” tab to keep a running record for future filings.
Why this works
The matrix condenses each state’s nexus rules into a visual lookup, so you don’t have to scroll through dozens of government websites or memorize varying thresholds. By following the steps above, you can quickly confirm whether a state you hadn’t considered (like a fulfillment center you only use during peak season) creates a filing obligation.
Note: This tip reflects the static content included in the downloadable Nexus Kit. It does not describe any future updates or dashboard features.