If your business installs products or provides services in multiple states, you may be exposed to complex—and often overlooked—sales tax obligations. Whether it's on-site work or remote services, the compliance risks are real.
Below, we’ll break down how both installation services and remote or digital service work can trigger sales tax nexus—and what your business should be doing about it.
Sales tax nexus is often triggered by physical presence in a state—and installation work is one of the most common ways that happens. If your employees or contractors perform installations at client locations, you may unknowingly establish nexus and be required to register and collect sales tax.
Keep in mind that states vary in how they define “doing business,” but even a single visit for installation may be enough to create a sales tax obligation.
Let’s say your company manufactures water filtration systems and sells them nationwide. If your employees travel to install these systems in states where you're not registered, you may be on the hook for collecting sales tax in those states. States like California, New York, and Texas are known for aggressively enforcing nexus laws based on even limited physical presence.
Yes—remote services can also create nexus, even if you're not physically present in the state. Many states now enforce economic nexus laws that consider total revenue or transaction counts, regardless of how the service is delivered.
If you're providing:
...you may create nexus once you exceed a state's economic threshold—often $100,000 in annual sales or 200 transactions.
Not necessarily. While some states do tax remote or digital services, others do not. For example:
It’s crucial to understand both nexus thresholds and service taxability on a state-by-state basis.
Whether you're sending technicians out for installations or serving clients remotely from another state, sales tax exposure can creep in fast. TaxValet removes that burden completely.
We help you:
With TaxValet, you can focus on growing your business, knowing your sales tax is handled by a team that understands your industry and your service model.