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You want to know what the difference is between sales and sellers use tax and what the nexus settings for those mean.
- Sales tax is typically required when you have physical presence.
- If you select Sales Tax as your nexus setting you'll only collect Sales tax, and never Use tax, in that State. Sales tax rates exist almost everywhere, at every jurisdiction level.
- When you are collecting as a convenience to your customer you typically collect a sales and sellers use tax. This nexus setting will collect Sales Tax on IntraState (Origin is within the State) sales, but Use Tax on InterState (Origin is out of State) Sales.
- Use tax rates exist for every state where there is state level sales tax, but other jurisdictions (County, City, Special) may not have a Use tax rate.
For more information, watch Sales vs. Seller's Use tax vs. Consumers Use Tax.