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Delaware and Oregon do not have economic nexus laws on the books because they do not need to. The four states that don't have sales tax are Delaware, Montana, New Hampshire, and Oregon. States without sales tax revenue do not need to be concerned with economic nexus.
Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.
According to Delaware's Division of Revenue, any company that is engaged in business in the state must have a business license and pay GRT. You must pay the tax if you sell goods or provide services in Delaware. Depending on the business's activity, gross receipts tax rates can range from 0.0945% to 0.7468%.
Add up your total sales to get gross receipts. If you've kept good records, it should be simple. Then subtract the cost of goods sold, as well as sales returns and allowances, to get your total income.
Doing Business in Delaware Delaware does not impose a state or local sales tax, but does impose a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services in the state.
The Delaware Division of Revenue states that merely creating an Internet site by a non-Delaware business does not, by itself, create nexus. But, locating a server in Delaware would create nexus/jurisdiction to tax the respective business. Currently, there are no Delaware economic nexus changes.
To find your gross receipts for personal income, add up your sales. Then, subtract your cost of goods sold and sales returns and allowances to get total income. The better your financial records are, the easier the process will be.
You may now file your gross receipts tax returns online and make a payment via credit/debit card or by Automated Clearing House (ACH) transaction from your checking account by visiting revenue.delaware.gov and clicking the link File Gross Receipts Tax. You will need either your Federal Employer Identification Number
Nexus determination is primarily controlled by the U.S. Constitution, in which the Due Process Clause requires a definite link or minimal connection between a state and the entity it wants to tax, and the Commerce Clause requires substantial presence.
If you operate a nonprofit organization, you must report gross receipts as your total income, rather than gross sales, as your income is most likely not sales-driven. For-profit businesses generally have sales income, which includes sales of services as well as goods.