Click-Through Nexus Taxes What are They? Do they apply to you?

Last Update: Sep 8, 2018

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I have slowly been following the training and intermittently watching prerecorded Jay's sessions while building out my website. I felt like I was at a good spot, my website had finally taken shape, to apply for a couple different affiliate programs. My first application went without a hitch; the second, not so well...

Something interesting happened..I applied to ShareASale, which has Wayfair, a large company that has lots of product, but was immediately declined, so I marked it off my list and went on to the next program on my list, but when I checked my email I had received an email stating that I am accepted into the program - ShareASale, but not Wayfair.

I assumed I had been declined because I live in West Virginia. They explicitly state in their "you've been declined" email that "Wayfair only partners with sites located in a Nexus state. If you are located in: Delaware, Hawaii, Iowa.... West Virginia..., you are receiving this decline automatically because of the Nexus internet tax laws passed in your state."

So I of course I googled Nexus tax and states.

What I found out was that some states have decided to try to get sales $$ from affiliate markerter's affiliate. Here's how it works - I think - If you are an affiliate who lives in New York, but selling a product from a store front in Illinois, New York wants taxes from that sale from the store front in Illinois. There are two types of nexus: click-through nexus and affiliate nexus legislation. Click-through seems the most relevant to what we do, where someone clicks your link, which sends our customer to the buisness site to purchase the item of interest.

With click-through there is oten a minumum amount of money the affiliate has to make before the nexus tax law applies. It seems to be around 10k for most nexus states where it is applied. The affiliate nexus seems more complex, but "typically requires that a remote retailer holds a substantial interest in, or is owned by, an in-state retailer and the retailer sells the same or a substantially similar line of products under the same or a similar business name, or the in-state facility." This type seems less relevant to what we do, but if this sounds familiar you may want to look into it....

After doing a little more research, I found a blog that discusses click-through nexus and states that have enacted click-through nexus provisions, interestingly West Virginia was not listed as one of those states, so I"ll keep doing my research...

Has anyone else had this issue? What have you found out about click-through nexus? Is there a more comprehensive site?

I am not a tax lawyer or tax accountant, so any thoughts would be appreciated.


Here are two sites I found nexus sales tax info:

https://blog.taxjar.com/click-through-nexus/https://www.salestaxinstitute.com/sales_tax_faqs/what_is_nex...




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