No nexus attribution Sample Clauses
The "No nexus attribution" clause establishes that the presence or activities of one party under the agreement will not be used to create a tax or legal connection (nexus) for the other party in a particular jurisdiction. In practice, this means that if one party operates, has employees, or conducts business in a certain location, those actions will not be attributed to the other party for purposes such as tax liability or regulatory compliance. This clause is essential for preventing unintended legal or tax obligations from arising simply due to the contractual relationship, thereby protecting each party from being held responsible for the other's local activities.
No nexus attribution. The agreement must provide that registration with the central registration system and the collection of sales and use taxes in the member states must not be used as a factor in determining whether the seller has nexus with a state for any tax.
No nexus attribution. The agreement must provide that registration with the central registration system described in subsection 4 and the collection of sales and use taxes in the signatory states to the agreement are not factors in determining whether a seller has a nexus with a state for any tax. [PL 2001, c. 496, §1 (NEW).]