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Configure and review sales tax

Last updated July 23, 2026

Purpose and common uses​

Sales Tax organizes jurisdictions, rates, taxable transactions, liability, and return preparation. Use the setup approved for your company and confirm filing requirements with your tax professional.

Before you begin​

Gather the jurisdiction name and type, country and region, tax authority, rate, filing frequency, due-day rule, effective date, applicable services, and exemptions.

  1. Click Accounting, then Sales Tax.
  2. Review Liability Review and the summary metrics.
  3. Click Add Jurisdiction.
  4. Enter Jurisdiction Name and choose Type.
  5. Select Country, region, and optional county or city.
  6. Enter Tax Rate (%) and Tax Authority.
  7. Choose Filing Frequency and enter Due Days After Period.
  8. Set Effective Date, add a description, and turn on Active Jurisdiction.
  9. Click Save Jurisdiction.

Create a jurisdiction for each authority your company needs to track.

Add a tax rate and review liability​

  1. Open Tax Rates and click Add Rate.
  2. Enter Rate Name and select Jurisdiction.
  3. Choose Component Type and enter Rate (%).
  4. Set effective and expiration dates.
  5. Enter applicable services and exemptions.
  6. Choose whether it is the Default Rate and an Active Rate.
  7. Save the rate.
  8. Open Transactions and compare taxable and exempt activity.
  9. Return to Liability Review and review collected tax, adjustments, and net liability.
  10. On Jurisdictions, choose the return action when you are ready to review Generate Tax Return.

Effective dates and taxable-item settings determine which rate should apply to new documents.

What happens next​

Taxable invoice lines use the document tax rate, and Sales Tax reports summarize recorded transactions. Review generated return information before filing outside Nexus.

Troubleshooting​

Tax is missing from an invoice​

Confirm the invoice rate is set and the applicable line items are taxable. Review fee tax settings separately.

Liability differs from the invoice total​

Compare the review period, taxable sales, exempt activity, credits, refunds, and adjustments.

A rate is not available​

Confirm its jurisdiction and rate are active and the effective date includes the invoice date.