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Kansas Sales Tax Guide

By Cristina Garza

Kansas, the wheat capital of the world, is a beautiful and peaceful state in which to live and do business! If you are one of the many proud small business owners who call Kansas home, you’ll obviously need to be sure your business complies with Kansas's sales tax laws.

 

No worries! We have assembled this all-in-one guide for sales tax so that you can meet the sales tax compliance requirements for a small business in Kansas. 


After reading this guide, you will have learned:

  • How to be prepared for your call with the Kansas Department of Revenue.
  • How to contact the Kansas Department of Revenue.
  • When to charge sales tax in Kansas.
  • What goods, products, and services are taxable in Kansas.
  • When you establish a sales tax nexus with the state of Kansas, and the nuances of various thresholds.
  • How to register for a sales tax license in Kansas.
  • How to collect sales tax in Kansas.
  • How to file and pay sales tax in Kansas.

If, after reading, you still have any questions to help you determine your tax sales obligations in Kansas and how to fulfill them, we are here for your small business bookkeeping needs! 

 

Kansas Sales Tax Contacts

Kansas Sales Tax Contacts

✅  Do you need to get in touch with the Kansas Department of Revenue?

✅  Are you uncertain about whether to visit, call them, or contact them through their website?  

✅ Do you wonder what information you should have ready before you contact them?

 

If you answered “Yes” to any of these questions, please read onward, as we have just the information you need! :)

The Kansas Department of Revenue is reachable by phone at 785-368-8222. 

You can also shoot a message to their email, or you may visit one of their physical locations. If you are looking for the fastest response, we suggest you give them a call instead of sending a message or visiting in person. 

When you do call the Kansas Department of Revenue, you will want to have some information on hand. It will save time to have the following information easily accessible before you call: 

  • Taxpayer Name
  • EIN
  • Sales & Use Tax ID Number

If you are calling on behalf of an individual or a business, or having a third party call on your behalf, you must have a Kansas Power of Attorney (form  DO 10, PDF) signed before you call or else you will be wasting your time; they can only help if you have a completed form. 

If you have any more questions, please feel free to contact us so we can assist you with your sales tax needs.

 

Kansas Sales Tax Registration

Kansas Sales Tax Registration

Does your business sell tangible property in Kansas? If yes, you are going to want to register your business with the Kansas Department of Revenue so that you can pay your sales tax fully and on time. 

This is a relatively simple process and one for which you’re about to be fully prepared. We are going to outline the steps below so you are totally ready to register for your sales tax license.

Here we go! Remember...

Preparation is key. 

Let’s get started!

 

 

How do I register to collect sales tax in Kansas?

You can apply or register for a Kansas sales tax permit by visiting the Kansas Department of Revenue and following the instructions provided.

Kansas also has an old school paper based form (PDF) you can print and mail in, but this is going to be a slower setup and with greater possibility for errors. We don’t recommend it, but wanted to make the option available in case it suits the needs of someone out there. 

 

 

What information do I need to register for a Kansas sales tax permit?

Great question!

Before you sign up for Kansas sales tax permit you’ll want the following information on hand:

  • Business name
  • Business entity type 
  • Description of business activities
  • Date business activities began or will begin
  • Business address and mailing address
  • Business contact information
  • Associated business entities 
  • NAICS code that best matches the business
  • Federal Employer Identification Number (FEIN)
  • List of business officers, partners, managing members, and/or trustees

Don’t forget! Preparation is key. When you have all this information ready, you can go online and register for your permit at the Kansas Business Tax Registration Application website. 

 

 

How much does it cost to register for a Kansas sales tax permit?

Kansas charges our absolutely favorite price of zero dollars and zero cents. :) 

 

 

Do I need a Federal Tax ID Number or EIN to register for a Kansas sales tax permit?

Quite right, yes! You will most assuredly need one, but if you don’t already have one and need to get a new EIN, it’s a painless process. You can register for a Federal EIN right here :). 

 

 

Which agencies in Kansas do I need to additionally register with?

You may need to apply to some of the following agencies: 

You’ll want to give this some thought and do a little research or investigating; since every business is unique, and there are such different rules, regulations, and laws that may apply. 

We suggest contacting the Kansas Department of Revenue to verify which additional government agencies you may be required to register with. 

 

*****

 

Yippee!!!

You are now prepared to register for your Kansas sales tax permit in Kansas. 

Let’s summarize what we have covered:  

  • Have all the required information easily accessible before registering online.
  • Acquire a tax ID or EIN before registering for a Kansas sales tax permit.
  • Register online at the Kansas Department of Revenue website.
  • Look into what other agencies you may have to additionally register with.

Registering for your Kansas sales tax permit will be stress free as long as you are prepared. We recommend organizing all the essential information in a folder, preferably using a system like Box.com or Dropbox (something we’re happy to handle for our customers). 

 

Kansas Sales Tax FAQ

Kansas Sales Tax FAQ 

By now, you may have already contacted the Kansas Department of Revenue and applied for a Kansas sales tax permit. 

Once you have a license to collect and remit sales taxes in Kansas, you will probably be asking yourself two questions: 

  • When do I charge a sales tax in Kansas?
  • What goods and services are subject to sales taxes in Kansas? 

We are going to go over some common questions that our clients have asked. We believe these questions will help you appreciate the nuances of taxable goods so you can be confident in fulfilling your tax obligations. 

Let’s start with the first question…

 

 

What goods and services are considered taxable in Kansas?

The following items are all taxable in the state of Kansas: 

  • Sales of tangible goods at retail.
  • Repairs or alterations of tangible personal property.
  • Property rentals, leases, or licenses [e.g. commercial, mini-warehouse]
  • Selling service warranty contracts.
  • Short-term rentals for living accommodations (e.g. motel/hotel, beach houses, condos, timeshares, vacation homes, or RV homes).
  • Rental/lease of personal goods (e.g.: machinery, vehicles, equipment, or other property).
  • Charges for admission to any place of amusement, sport, or recreation.
  • Manufacturing or producing goods for retail sales.
  • Operating vending machines or amusement rides.
  • Services are mostly exempted

 

The bottom line is …

Your business must pay taxes on sales of any non-exempt goods, and some taxable services.

*****

 

Let’s now review some of our clients’ frequently asked questions:

  • Is Kansas an Origin or Destination sales tax State?
  • What creates a sales tax nexus in Kansas?
  • What is the economic threshold in Kansas?
  • Does Amazon have fulfillment centers in Kansas?
  • Does Kansas have a Click-Through Nexus?

 

To best understand your tax obligations, new businesses need to consider how they are doing business and the type of relationships they have with buyers and any third parties to their transactions. 

 Let’s discuss some questions that will help you understand the nature of your small business and the subsequent tax implications.   

 

Is Kansas an origin or destination-based sales tax state?

Kansas is a destination-based sales tax state, which simply means you charge sales tax based on the location of the purchaser rather than that of the seller. Local cities and unincorporated areas may choose to add up to an additional 2% on general tax and 1% for special surtax. Kansas’s Department of Revenue website to check the sales tax rate based on an address.

For more information on destination-based taxation in Kansas, click here.

 

 

What creates a tax nexus with the state of Kansas?  

Having nexus, also known as "sufficient business presence,” with Kansas means your business has established a taxing connection with a state. When this happens, you are required to collect and remit sales tax in Kansas because you created a sales tax Nexus.

Even if your business maintains its main headquarters in another state, you may still have to charge and pay sales tax to the Kansas Department of Revenue even if you never step foot in Kansas.   

So, how do you create a sales tax Nexus in Kansas?

 

Sales Tax Nexus in Kansas

 

A business establishes a nexus in Kansas by:

  • having a business location in Kansas;
  • having property stored in Kansas;
  • employing any person in Kansas;
  • contracting with a salesperson or other agent in Kansas;
  • leasing equipment used in Kansas;
  • performing services in Kansas;
  • licensing the use of intangible property in Kansas, or transporting property in Kansas using the taxpayer’s vehicles.

Let’s talk a bit more specifically about where your goods are stored such as in the instance of an Amazon warehouse. 

 

Does Amazon have fulfillment centers in Kansas?

Yes, Kansas has one distribution center at this time:

6925 Riverview Ave 

Kansas City, KS  66102

This information is relevant for our customers who sell products on Amazon or are recognized as Amazon FBA (Fulfillment by Amazon) sellers. When Amazon stores products in one of its fulfillment centers in any state including, it triggers a sales tax requirement. 

We often use A2X + Wherestock to find out where our clients’ inventory is currently being held by Amazon across the country. This helps us determine what our clients need to do to be in compliance with all applicable state tax laws.

 

 

Does Kansas have economic nexus?

Not yet! The state has, at the time of this article’s writing, passed economic nexus bills twice but both times they’ve been vetoed by the governor. 

 

 

Does Kansas have click-through nexus?

Yes, Kansas has click-through nexus as of August 2013. This means if your business is involved in affiliate marketing sales to Kansas purchasers, you may be liable to pay sales tax even if you aren’t located in the state of Kansas. 

In any other situation where your business is garnering revenue from assisting sales and gross receipts exceed $10,000/year, you will need to register and pay as an affiliate. 

 

 

Is Kansas a streamlined sales tax state?

Yes indeedy! Since October, 2005 Kansas has been a full member of Streamlined Sales Tax.

If you are planning on taking advantage of the Streamlined Sales Tax as a business, it is recommended you use a Certified Service Provider though businesses may opt to register themselves without a CSP. Ultimately the aim of streamlined sales tax is to simplify payment to multiple different states of sales and use tax. It isn’t required that you utilize them, but it can significantly reduce complexity to do so, especially if your business sells in multiple states.

 

 

More effectively manage your tax needs by keeping this guide handy. 

You and your business can be better equipped to avoid situations like paying fines, paying back taxes that you did know you had to pay in the first place, or facing an audit by the tax authorities in Kansas.

 

Collecting Sales Tax in Kansas

Collecting Sales Tax in Kansas

By now you know if you are a business that has established a nexus with Kansas. So you have an understanding about whether, or when, you are required to collect sales tax. Knowing this is just half the battle! Now, we are going to help you with the next half of the battle: how to navigate the process of collecting taxes.

Let’s review some common questions our clients have asked regarding their Kansas Sales Tax obligations. 

  • How do I collect Kansas Sales Tax?
  • Who is eligible for Kansas Sales Tax exemptions?
  • What should I do if my customer is exempt from sales tax in Kansas?
  • What happens if I lose a Kansas nontaxable transaction certificate? 

After reading this, you will be better equipped to determine when --and when not-- to collect sales tax in Kansas.

 

 

How do I collect Kansas sales tax?

Because Kansas is a destination-based state, you will want to configure your Point-of-Sales software to charge tax based on the location of the purchaser. Should you need to verify the proper rate manually, Kansas has a local tax lookup page.

 

 

What are the current Kansas sales tax rates?   

Kansas’s state-wide sales tax rate is 6.5% at the time of this article’s writing, with the local surtaxes potentially bringing that as high as 8.5%. However, since sales tax rates may change, we shall refer you to check out the Kansas Department of Revenue tax rate lookup page. Any change will be reflected on that page.

It always helps to be accurate and up to date with this type of information! :) 

 

 

What is exempt from Kansas sales tax?

Here is a sample list of exemptions: 

  • Purchases for resale
  • Everyday clothing items
  • Medical supplies
  • Groceries 

Kansas has too many exempt items to list here, but they go into greater detail on their website.

 

 

Who are eligible for Kansas sales tax exemptions?

At this point, you should know what products are exempt from sales tax in Kansas. You also want to know who may be exempt. 

Under Kansas law, the type of buyer or the way the goods will be used can qualify can buyer for a sales tax exemption. A good example of this is a merchant purchasing goods for resale, aka a wholesaler.

Other common examples of an exempt buyer may include:

  • Government agencies
  • Non-profit organizations
  • Religious groups
  • Out-of-state buyers (should their business not have nexus in their home state).

Note that a non-profit or contractor status doesn’t necessarily immediately confer tax exempt status.

 

 

What should I do if my customer is exempt from sales tax in Kansas?

Purchasers who are tax exempt must have completed a valid exemption certificate form and must present their completed exemption certificate at the time of purchase. It is then incumbent upon the seller to hold on to this exemption certificate. Failure to do so may leave you unable to justify tax exempt sales.

Remember, you always want to collect and file a copy of the exempt certificate. Such certificates must be produced upon request in the event of an audit to justify tax-exempt sales.

 

 

What happens if I lose a Kansas sales tax exemption certificate?

Hmm... Obviously this issue is best to be avoided! Imagine finding out you’ll be audited and discovering you cannot produce an exemption certificate for a buyer! That nightmare scenario would mean you could be held liable to pay all taxes on behalf of the buyer. This is a bad scene and can be avoided by taking proper care with your paperwork… which happens to be one of our specialties! :) 

 

 

Does Kansas have a sales tax holiday?

Nope, they do not. Carry on, you wayward sons.

 

***** 

 

We have now covered who you need to collect sales taxes from, how to determine whether goods for sale are deemed taxable, what goods and services fall under tax exemptions, who is eligible for tax exemption certificates, and, finally, the process of collecting sales tax in Kansas state. 

Now that we’re this far down the rabbit hole there’s only one thing we need to learn about next… how to pay the piper! 

 

Filing and Paying Sales Tax in Kansas 

Filing and Paying Sales Tax in Kansas

It is time to talk about filing and paying your sales taxes in Kansas. In this section, We are going to cover the following frequently asked questions from our clients:

  • When is Kansas Sales Tax due?
  • What are the Kansas Sales Tax thresholds?
  • What if a Kansas Sales Tax filing date falls on a weekend or holiday?
  • How do I file a Kansas Sales Tax Return?
  • How do I correct a Kansas Sales Tax return?
  • What happens if I don’t collect sales tax?
  • What happens if I file or pay my sales tax return late?
  • Do I need to file a return if I don’t collect any sales tax in Kansas?
  • If I close my business, do I need to file a final sales tax return?
  • Does the Kansas Department of Revenue offer a discount for filing on time?

By the time you finish reading this, you will feel confident enough to file and pay your Kansas Sales Tax.

 

 

When is Kansas sales tax due?

Kansas sales tax payments are due based on the filing interval. Filing intervals are based on the company’s tax liability [detailed just ahead, do be patient! :p] 

 

Filing Interval

Due day

Annually

January 25th of the following year.

Quarterly

Q1 April 25, Q1 July 25, Q3 October 25, Q4 January 25

Monthly

The 25th of the following month

Pre-paid Monthly

First 15 days liability is due on or before the 25th of that month.

 

 

What are the Kansas sales tax filing interval thresholds?

The thresholds for filing intervals are based on the expected or actual tax liability owed:

 

Amount Owed [anticipated if new business, actual if existing company]

Filing interval

$0 - $400 in a year

Annual 

From $400.01 to $4,000 in a year

Quarterly

From $4,000.01 to $40,000 in a year

Monthly

More than $40,000.01 in a year

Pre-paid monthly

 

For more information, consult the Kansas Department of Revenue FAQ page.

 

Not sure how to determine your tax filing frequency?

You can review your eCommerce or Point-of-Sale Software to see the volume of sales you have generated. 

Don't worry though! The state will let you know when your due dates change. :) 

Keep an eye out for notices in your mail from the State of Kansas so that you don't miss any shift in deadlines.

 

What if a Kansas sales tax filing date falls on a weekend or holiday?

The deadline is moved to the next business day, typically the Monday following the weekend or the day after the holiday. Where possible, we always suggest filing well before the holiday, of course ;). 

 

 

How do I file a Kansas sales tax return?

Paper: Complete ST-16 (single jurisdiction) or ST-36 (multiple jurisdictions). Enclose payment and mail to:

 

Tax Operations

Docking State Office Building 

915 SW Harrison St.

Topeka, KS 66612-1588.

 

Electronic: File online and submit payment via EFT.

  

 

How do I correct a Kansas Sales Tax return?

Paper: Complete a new ST-16 (single jurisdiction) or ST-36 (multiple jurisdictions) but check the “Amended return” box.

Electronic: Amend your original return online

 

 

What happens if I don’t collect sales tax?

If you were required to collect sales taxes and failed to do so for whatever reason, that’s a big no-no! Ultimately the business will be held liable for the due tax. Always be sure to collect sales tax at the point of sale. Attempting to collect after the fact will be time consuming and most likely unsuccessful. 

 

Protip: You are still responsible for remitting sales taxes even if you failed to collect them. 

 

 

What happens if I file or pay my sales tax return late?

This isn’t a problem our customers tend to run into! But, for those who need to know: 

 

There is a 1% penalty of the amount due but unpaid for each month or portion of month the payment is late, up to a maximum of 24%.

 

Interest is also charged on late payments at a rate tied to the Federal underpayment rate which changes yearly. Should you need to know rates prior to 2014 or after 2015, check the Kansas Penalty and Interest page

 

 

Do I need to file a return if I don’t collect any sales tax in Kansas?

Yes, Kansas requires businesses file a “Zero-Tax” return even when they have no sales during a taxing period.

 

 

If I close my business, do I need to file a final sales tax return?

Yes, Kansas requires businesses to file a “Final sales tax” return when closing their doors.

 

 

Does the Kansas Department of Revenue offer a discount for filing on time?

Nope! The reward for filing on time is not being penalized for paying late :) 

 

*****

 

Now that we covered all our bases for filing and paying sales taxes in the state of Kansas, you should feel more at ease about the process.

 

Some things to remember:

  • Due dates are important. If anything, file and pay your taxes early.
  • There are three payment plans for filing and paying your sales taxes depending on how much you collect in sales tax on average in a month.
  • You can file and pay your taxes electronically or by mail
  • If you need to amend a return, you may do so electronically or by paper.
  • If you don’t collect sales tax and you were supposed to, you (not the buyer) is liable to pay the sales tax to the state of Kansas.
  • You will have to pay late fees if you fail to file your tax return on time and/or if you fail to make your tax payment on time.
  • Even if you collect no sales tax, you still need to file a return.
  • You need to file a “Final sales tax report” when you close your business.

 

Now, you are ready to file and pay your sales tax in Kansas. If you have any questions at all, please feel free to reach out to us! :)

📞 Book a Free Consultation Here 

 


 

Please note: This blog is for informational purposes only and the information is accurate as of 7/5/2019. If you want legal advice on sales tax law for your business, please contact a Sales Tax professional. Keep in mind that sales tax regulations and laws are subject to change at any time. While we strive to keep our blog current, this blog possibly may be out of date by the time you review it. 

Tags: Sales Tax, Kansas