Sales tax glossary
What is affiliate nexus?
Affiliate nexus is a sales tax obligation a remote seller can have in a state because a related company or agent there helps it make sales. Examples include a sister company that runs a store, accepts returns, or promotes the seller's brand in that state.
Example
An online retailer has no stores in a state, but a corporate affiliate runs stores there under the same brand and accepts the retailer's returns. The state can treat the online retailer as having nexus.
Why it matters for sellers
Corporate structure doesn't keep a brand out of a state's reach. Review what related companies and partners do on your behalf in each state before assuming you have no obligation there.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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