Nexus can refer to different things depending on the context. Here are some of the most common meanings:
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NEXUS Program: This is a joint Canada Border Services Agency and U.S. Customs and Border Protection-operated Trusted Traveler and expedited border control program designed for pre-approved, low-risk travelers. It allows pre-screened travelers expedited processing when entering the United States and Canada.
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Sales Tax Nexus: This refers to the level of connection between a taxing jurisdiction such as a state and an entity such as a business. Until this connection is established, the taxing jurisdiction cannot impose sales tax on the entity. The rules for determining nexus vary by state and can change constantly, so businesses must stay on top of changing regulations and interpretations.
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Connection or Link: Nexus can also mean a connection or link between things, such as a causal link or a connected group or series. For example, the nexus between poverty and crime, or a nexus of theories.
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Nexus Tax: This is a type of tax or fee imposed by states or jurisdictions on businesses that have a sales tax nexus within their borders. A sales tax nexus is created when a business has a sufficient connection to or presence in a state or jurisdiction, such as a physical presence or economic activity, which triggers a sales tax collection obligation.
In summary, nexus can refer to a border control program, a connection between things, or a sales tax concept.
