HubSpot now automatically monitors your cumulative revenue and transaction volume by U.S. state and Canadian province, and notifies you the moment you've crossed a sales tax threshold in a new jurisdiction so you know when to register. Once you've registered with the relevant tax authority and recorded the registration in HubSpot, Automated Sales Tax immediately begins calculating and collecting tax on subsequent transactions there.
Until now, Automated Sales Tax customers had to manually track whether they'd established a sales tax obligation (called "economic nexus") in each state or province they sell into. With thresholds varying widely by jurisdiction and revenue accumulating passively across quotes, invoices, payment links, and subscriptions, it was easy to miss a new tax registration obligation.
Tax threshold monitoring eliminates that guesswork so you can:
To review your nexus status, go to Settings > Revenue > Tax > Automated Sales Tax. Here you can view a jurisdiction-by-jurisdiction view of your running totals and threshold proximity in the “Tax Threshold Monitoring” component.
When you cross a threshold in a new jurisdiction, you'll receive:
Once you've registered with the relevant tax authority, mark the jurisdiction as registered in HubSpot in Automated Sales Tax > Manage tax settings. From that point forward, Automated Sales Tax automatically calculates and collects tax on new transactions in that jurisdiction.
Revenue Hub Professional, Revenue Hub Enterprise