In Hawaii, a physical nexus is established when a business has a physical presence in the state. This includes:

• Offices or Warehouses: Owning or leasing property in Hawaii.

• Employees: Having employees or representatives working in the state.

• Inventory: Storing inventory in Hawaii.

• Trade Shows: Participating in trade shows beyond mere solicitation.

• Affiliates: Using affiliates to promote or maintain a market in Hawaii.

These factors require businesses to register for GET, collect, and remit taxes, ensuring compliance with Hawaii’s tax obligations.