If you're selling online in 2026 and not managing sales tax correctly, you could already owe money to states you've never physically operated in.
After the 2018 South Dakota v. Wayfair Supreme Court ruling, states can require you to collect and remit sales tax based purely on your sales volume into that state — even with zero physical presence. This is called economic nexus, and most online sellers don't realize it applies to them until it's too late.
This video walks you through exactly how to handle it — from understanding nexus to setting up sales tax step by step inside both Xero and Zoho Books.
What's covered:
Physical vs. economic nexus explained
The $100,000 threshold that triggers tax obligations
How marketplace facilitator laws affect Amazon and Etsy sellers
Full sales tax setup walkthrough inside Xero using Avalara AvaTax
Full sales tax setup walkthrough inside Zoho Books
When to go manual vs. automated
How to file and pay across multiple states
Whether you're just starting out or already scaling across multiple platforms, getting this right now is far cheaper than dealing with back taxes and penalties later.
Try Xero with an exclusive discount: https://referrals.xero.com/60txq69kinl1
Try Zoho Books free: https://go.zoho.com/YlQr
More practical accounting and e-commerce guides at ecombuilderinsider.com
Comments