They state “ ttending trade shows, seminars or conventions in this State” does “not constitute a substantial physical presence” sufficient to create nexus. Maine – Maine is one of the simpler states when it comes to trade show nexus. Kansas – According to the Kansas Department of Revenue, attending a trade show in Kansas does not create nexus as long as you do not take orders or make sales there. will trigger Use Tax collection responsibilities.” Illinois is also one of the more active states when it comes to trade show nexus enforcement, so use caution when attending a trade show in this state. (Just as they do with the issue of sales tax on shipping in Illinois.) Illinois’ latest rulings on the subject are inconclusive, but they do say “ ny type of physical presence in the State of Illinois …. Illinois – Illinois has had a fraught relationship with trade shows and sales tax nexus, issuing differing opinions over time. Georgia – An out-of-state company will not be considered a “dealer” for sales tax purposes if its physical presence in the state is limited to participating in convention and trade show activities, provided that such activities do not exceed more than five days in any twelve-month period and the seller did not derive more than $100,000 of net income from those activities in Georgia during the prior calendar year. According to their wording, “any orders must be sent outside Connecticut for acceptance and fulfillment.” California also considers it okay to make sales at a trade show, but you must apply for a temporary California sales tax permit and collect sales tax on those orders.Ĭonnecticut – An out-of-state company that is not otherwise engaged in business in Connecticut will not be subject to tax based on trade show activities like displaying goods or promoting services, as long as the aggregate number of days in Connecticut does not exceed 14 days, and only if no sales are made at the show. (This post was originally posted in March 2015 and updated April 2016 to add new guidance from Washington state.)Ĭalifornia – Any out-of-state business whose sole activity in California is engaging in convention or trade show activities for fewer than 15 days and whose gross income from that activity is less than $100,000 is not considered to have nexus with the state for sales and use tax purposes. These laws are subject to change at any time, so for up-to-date information contact the state’s department of revenue. Below is a list of states that have made a ruling. Not all states make specific statements when it comes to trade shows and sales tax nexus. Of course, as it goes with almost anything sales tax-related, every state is different. After all, who wants to be on the hook for sales tax compliance all year just because you attended a 5-day trade show?īecause of these two competing factors, some states advocate a “middle way.” They don’t consider a trade show to constitute sales tax nexus as long as your company:Ī.) Only attends for a short period of time and/orī.) Does not make sales at the actual trade show itself Not paying attention to each state’s ruling on trade show nexus could become a costly mistake.Įncourage Trade Show Attendance – On the other hand, many pro-business groups take the stance that heavily enforcing sales tax nexus among trade show attendees discourages attendance and the subsequent boost a state’s economy otherwise receives from having companies from all over converge on the state for a trade show. Collecting sales tax from out of state sellers is obvious “easy money.” This is because once you have sales tax nexus in a state, you have sales tax nexus for all of your business sales, not just the sales that take place at the trade show you happened to attend. There are logical pros and cons that states seem to consider when deciding this issue:Ĭollecting More Sales Tax – The most obvious “pro” is that many states are broke and searching for sources of revenue everywhere they can. There isn’t much case law on the subject of trade shows and nexus, so it’s mainly up to each state to determine what activities constitute sales tax nexus. But attending a trade show can also be a great way to inadvertently establish sales tax nexus for your business in a new state. Many small business owners cross state lines to attend trade shows. Gathering with your customers and partners can be a great way to find new business and make some sales. Do you sell at craft fairs or festivals? Check out our State-by-State Guide to Sales Tax at Craft Fairs and Festivals. This blog post is about selling at trade shows. Does Attending a Trade Show Create Sales Tax Nexus?
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