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Nevada Sales Tax Guide

By Cristina Garza

🎲🎰🤑 Vegas, baby! Nevada is, of course, home to much more than the (in)famous neon city of excess. But as engines of commerce go, the Las Vegas Strip is hard to beat. Can you believe Las Vegas eats more shrimp than the rest of the country combined? It’s true! 🍤 With a permissive regulatory environment and 24/7 on-call Bacchanalia, Nevada is quite the place to run a small business. If you’re one of the many small business owners who rolled the dice and calls Nevada home, you’ll obviously need to be sure your business complies with Nevada'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 Nevada. 

After reading this guide, you will have learned:

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

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

 


Nevada Sales Tax Contacts

Nevada Sales Tax Contacts

 

✅  Do you need to get in touch with the Nevada Department of Taxation?

✅  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 Nevada Department of Taxation is reachable by phone at (866) 962-3707. 

You can also visit one of their physical locations, but they don’t have any way to send an email or message. If you are hoping for the fastest response, our suggestion is that you call rather than visit in person. 

When you do call the Nevada Department of Taxation, 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 have any more questions, please feel free to contact us so we can assist you with your sales tax needs.

 

 


Nevada Sales Tax Registration

Nevada Sales Tax Registration

 

Are you a new business selling tangible property in Nevada? If yes, you are going to want to register your business with the Nevada Department of Taxation so that you can pay your sales tax on time. 

You need not fret as 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 Nevada?

You can apply or register for a Nevada sales tax permit by visiting the Nevada Tax Center website and following the instructions provided.

Nevada 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, and Nevada discourages it on their website, but we 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 Nevada sales tax permit?

Great question!

Before you sign up for Nevada 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 Nevada Tax Center website

 

 

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

A fee of $15 per location is required to register a new business in Nevada. Many states don’t charge but Nevada isn’t one of them. 👎

 

 

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

Indubitably, 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 Nevada do I need to additionally register with?

You may need to check with some of the following agencies or resources: 

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 Nevada Department of Taxation to verify which additional government agencies you may be required to register with. 

 

*****

 

Huzzah!!!

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

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 Nevada sales tax permit.
  • Register online at the Nevada Tax Center website.
  • Look into what other agencies you may have to additionally register with.

Registering for your Nevada 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). 

 

 


Nevada Sales Tax FAQ

Nevada Sales Tax FAQ 

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

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

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

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 Nevada?

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

  • 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 Nevada an Origin or Destination sales tax State?
  • What creates a sales tax nexus in Nevada?
  • What is the economic threshold in Nevada?
  • Does Amazon have fulfillment centers in Nevada?
  • Does Nevada 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 Nevada an origin or destination-based sales tax state?

Nevada 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. Nevada’s Department of Taxation offers a map to check the sales tax rate (PDF) based on county.

 

 

 Protip: Charge the customer tax based on their location.

 

 

What creates sales tax nexus with the state of Nevada?  

Having nexus, also known as "sufficient business presence,” with Nevada means your business has established a taxing connection with a state. When this happens, you are required to collect and remit sales tax in Nevada 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 Nevada Department of Taxation even if you never step foot in Nevada.   

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

 

 

What creates sales tax nexus?

 

 

A business establishes a nexus in Nevada by:

  • having a business location in Nevada;
  • having property stored in Nevada;
  • employing any person in Nevada;
  • contracting with a salesperson or other agent in Nevada;
  • leasing equipment used in Nevada;
  • performing services in Nevada;
  • licensing the use of intangible property in Nevada, or transporting property in Nevada 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 Nevada?

Yes, four at the time of this article’s publication:

  • 3837 Bay Lake Trail Ste. 115 // North Las Vegas, NV // 89030
  • 4550 Nexus Way // North Las Vegas, NV // 89115-1826
  • 555 Milan Dr  // Sparks, NV  // 89434
  • 8000 N Virginia St  //  Reno NV  // 89506

This is relevant if you sell your products on Amazon or are recognized as an Amazon FBA (Fulfillment by Amazon) seller. When Amazon stores your products in one of its fulfillment centers in any state, including Minnesota, this triggers a sales tax requirement. If Amazon is storing your products in a warehouse in Minnesota, you have created a taxing connection with the state of Minnesota.

We can help guide your small business through this! We use tools like A2X and Wherestock to identify where our clients' inventory is currently being held and shipped from so that we can keep them in compliance.

 

 

Does Nevada have economic nexus?

Yes, Nevada now has an economic nexus law. As of October 1st, 2018 remote sellers are liable to pay sales tax beyond a certain threshold. This means that even businesses without a physical presence or traditional nexus can be required to register for, collect, and pay sales taxes.

The threshold for registering is having a cumulative gross revenue of over $100,000 to Nevada purchasers or over 200 transactions.

For  more information see the Nevada DOT’s remote sellers page here.

 

 

Does Nevada have click-through nexus?

Yes! This means if you’re an affiliate sales or third party marketer, you may have a tax liability even if you don’t meet nexus another way. If revenue exceeds $10,000/quarter four quarters in a row, affiliate marketers will need to register for and pay sales tax.

 

 

Is Nevada a streamlined sales tax state?

Yep! Since April, 2008 Nevada 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 Nevada.

 

 


Collecting Sales Tax in Nevada

Collecting Sales Tax in Nevada

By now you know if you are a business that has established a nexus with Nevada. 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 Nevada Sales Tax obligations. 

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

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

 

 

How do I collect Nevada sales tax?

As we mentioned above, Nevada is a destination-based state, so you’ll want to collect tax based on the purchasers location. Your point-of-sale software should make this relatively simple, including accounting for any local surtaxes. In Nevada, tax must be accounted for in a transaction; sellers may include in a purchase price but must make it clear that it is included.

 

 

What are the current Nevada sales tax rates?   

Nevada’s state-wide sales tax rate is 6.85% at the time of this article’s writing, with the local surtaxes potentially bringing that as high as 8.265%. However, since sales tax rates may change, we shall refer you to check out the Nevada Department of Taxation 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 Nevada Sales tax?

What is exempt from sales tax in Nevada

Here is a sample list of exemptions: 

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

Nevada does not have many exempt items to list here, and they go into greater detail on their website.

 

 

Who are eligible for Nevada sales tax exemptions?

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

Under Nevada 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. To learn more about this, click here.

 

 

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

Purchasers who are tax exempt must have completed resale certificate (PDF) 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 Nevada 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 Nevada have a sales tax holiday?

No, unfortunately they offer nary a day’s respite! 

 

***** 

 

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 Nevada 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 Nevada

Filing and Paying Sales Tax in Nevada

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

  • When is Nevada Sales Tax due?
  • What are the Nevada Sales Tax thresholds?
  • What if a Nevada Sales Tax filing date falls on a weekend or holiday?
  • How do I file a Nevada Sales Tax Return?
  • How do I correct a Nevada 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 Nevada?
  • If I close my business, do I need to file a final sales tax return?
  • Does the Nevada Department of Taxation offer a discount for filing on time?

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

 

 

When is Nevada sales tax due?

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

 

Filing Interval

Due day

Annually

No later than January 31st

Quarterly

No later than the last day of the month following the quarter

Monthly

No later than the last day of the month following the month being reported

 

 

What are the Nevada Sales Tax filing interval thresholds?

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

 

Average Tax Liability Owed Monthly*

Filing interval

Less than $1,500.01

Annual 

Between $1,500.01 and $10,000 

Quarterly

More than $10,000.01

Monthly

 

*anticipated if new business, actual if existing company

 

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 Nevada so that you don't miss any shift in deadlines.

 

 

What if a Nevada 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 Nevada sales tax return?

Paper: Complete the form (PDF) and mail to the specified address.

Electronic: File online via Nevada Tax Center and submit payment via EFT.

  

 

How do I correct a Nevada sales tax return?

Paper: There is no special form to amend a return in Nevada. Use the copy you retained and make adjustments on the file where possible, and be sure to include any additional proof or documentation. Here’s an example (PDF).

Electronic: See above, no online option unfortunately. 

 

 

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?

Nevada's Department of Taxation charges a penalty ranging from 2% to 10% of the tax owed, based on how late. Additionally, .75% interest is charged on late payments.

 

 

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

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

 

 

Does the Nevada Department of Taxation offer a discount for filing on time?

The Nevada Department of Taxation does extend a discount for early filers! With no minimum or maximum, .25% of the collected tax may be discounted for filing early… We suggest you capitalize on this! 💸💸💸

 

*****

 

Now that we have covered all our bases for filing and paying sales taxes in the state of Nevada, 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 Nevada.
  • 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 Nevada. If you have any more questions, feel free to contact us.

  

Click here if you think sales tax is boring. Book a meeting.

 


Please note: This blog is for informational purposes only and the information is accurate as of 8/28/2019. 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, Nevada