18 min read
Nevada Sales Tax Guide
🎲🎰🤑 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...
⛪🌻North Dakota, the Peace Garden state, is one of the coldest states in the union. Maybe that’s why it has more churches per capita than any other state. :) The state also produces more sunflowers and honey than any other state, brightening its disposition. Despite an oil rush making North Dakota the second largest producer of oil after Texas, agriculture remains the primary industry in the state. If you’re one of the many small business owners proud to call North Dakota your home, you’ll definitely want to ensure your business complies with North Dakota's sales tax laws. Fear not! We have put together this all-in-one guide for sales tax so that you can meet the sales tax compliance requirements for a small business in North Dakota.
After reading this guide, you will have learned:
If, after reading, you still have any questions to help you determine your tax sales obligations in North Dakota and how to fulfill them, we are here for your small business bookkeeping needs!
✅ Do you need to get in touch with the North Dakota State Tax Commissioner?
✅ 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 North Dakota State Tax Commissioner is reachable by phone at 701-328-1246.
You can also visit one of their (not always populated!) remote offices, or send them an email. If you are hoping for the fastest response, our suggestion is that you call rather than visit in person or by email.
When you do call the North Dakota State Tax Commissioner, you will want to have some information on hand. It will save time to have the following information easily accessible before you call:
If you plan on having a third party contact the ND DOT on your behalf, you’ll want to be sure to have completed a power of attorney form (form 500, PDF). If you don’t have a completed form they won’t be able to assist someone else on your behalf.
If you have any more questions, please feel free to contact us so we can assist you with your sales tax needs.
Are you a new business selling tangible property in North Dakota? If yes, you are going to want to register your business with the North Dakota State Tax Commissioner 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.
You can apply or register for a North Dakota sales tax permit by visiting the North Dakota Taxpayer Access Point site and following the instructions provided.
North Dakota 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 a greater possibility for errors. We don’t recommend it, and North Dakota discourages it on their website, but we wanted to make the option available in case it suits the needs of someone out there.
Great question!
Before you sign up for a North Dakota sales tax permit you’ll want the following information on hand:
Don’t forget! Preparation is key. When you have all this information ready, you can go online and register for your permit at the North Dakota Taxpayer Access Point site.
Zip! Zero! Zilch! :] North Dakota won’t charge you anything to register a new sales tax permit.
Absolutely! 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 :).
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 North Dakota State Tax Commissioner to verify which additional government agencies you may be required to register with.
*****
Huzzah!!!
You are now prepared to register for your North Dakota sales tax permit in North Dakota.
Let’s summarize what we have covered:
Registering for your North Dakota 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).
By now, you may have already contacted the North Dakota State Tax Commissioner and applied for a North Dakota sales tax permit.
Once you have a license to collect and remit sales taxes in North Dakota, you will probably be asking yourself two questions:
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…
The following items are all taxable in the state of North Dakota:
*****
Let’s now review some of our clients’ frequently asked questions:
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.
North Dakota is a destination sales tax state. This means you’ll want to charge sales tax based on the location of the purchaser vs. the location of the business. This is usually simply a matter of configuration in your POS system.
Protip: Charge the customer tax based on their location.
Having nexus, also known as "sufficient business presence,” with North Dakota means your business has established a taxing connection with a state. When this happens, you are required to collect and remit sales tax in North Dakota 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 North Dakota State Tax Commissioner even if you never step foot in North Dakota.
So, how do you create sales tax nexus in North Dakota?
A business establishes a nexus in North Dakota by:
Let’s talk a bit more specifically about where your goods are stored, such as in the instance of an Amazon warehouse.
Nope, North Dakota has no Amazon fulfillment centers at this time.
(This matters for our customers who sell on Amazon or through FBA)
Yes, North Dakota now has an economic nexus law. As of July 1st, 2019 remote sellers with gross revenue of over $100,000 are required to pay sales tax.
For more information see the North Dakota DOT’s remote sellers page here.
Nope, not at this time. This means if you’re making revenue through affiliate marketing you don’t have to register if you don’t otherwise have nexus.
Yep! Since October 2005 North Dakota 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 the complexity to do so, especially if your business sells in multiple states.
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 North Dakota.
By now you know if you are a business that has established a nexus with North Dakota. So you have an understanding of 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 North Dakota Sales Tax obligations.
After reading this, you will be better equipped to determine when --and when not-- to collect sales tax in North Dakota.
As we mentioned above, North Dakota is a destination state, so you charge sales tax based on the location of the buyer. It’s also important to declare the tax on the receipt or invoice, as North Dakota doesn’t permit “eating the tax.”
North Dakota’s state-wide sales tax rate is 5% at the time of this article’s writing, with local surtaxes potentially adding on top of that. Since sales tax rates may change, we shall refer you to check out the North Dakota State Tax Commissioner 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! :)
North Dakota does not have many exemptions beyond the standard ones, but they do offer a complete list of exempted items.
At this point, you should know what products are exempt from sales tax in North Dakota. You also want to know who may be exempt.
Under North Dakota law, the type of buyer or the way the goods will be used can qualify can buy 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:
Note that a non-profit or contractor status doesn’t necessarily immediately confer tax-exempt status.
Purchasers who are tax-exempt must have completed resale certificates (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. The ND DOT offers a page to verify the validity of an exemption certificate.
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.
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! :)
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 North Dakota 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!
It is time to talk about filing and paying your sales taxes in North Dakota. In this section, We are going to cover the following frequently asked questions from our clients:
By the time you finish reading this, you will feel confident enough to file and pay your North Dakota Sales Tax.
North Dakota 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]
The state of North Dakota requires payment by no later than the 20th of the month following the reporting period
The thresholds for filing intervals are based on the expected or actual tax liability owed:
Average Tax Liability Owed Monthly* |
Filing interval |
Less than $2,750 |
Annually |
Between $2,750.00 - $6,666.65 |
Quarterly |
Anything from $6,666.66 and up |
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 North Dakota so that you don't miss any shift in deadlines.
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 ;).
Paper: Download and fill out form ST (PDF) and mail to the address on the form
Electronic: File North Dakota Taxpayer Access Point and submit payment via EFT.
Paper: Fill another form ST (PDF) but check the ‘amended’ box at the top.
Electronic: Amend online via the North Dakota Taxpayer Access Point
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.
North Dakota's State Tax Commissioner charges separate penalties for late filing or late payment ranging from $5 or 5% (whichever is greater) to 25% of the tax owed, depending on how late. Additionally, interest of 1% is applied after the first month.
Indeed! North Dakota requires businesses to file a “Zero-Tax” return even when they have no sales during a taxing period.
Absolutely, North Dakota requires businesses to file a “Final sales tax” return when closing their doors.
Yes! North Dakota offers an early filing discount of 1.5% up to a maximum of $110/mo with no minimum.
*****
Now that we have covered all our bases for filing and paying sales taxes in the state of North Dakota, you should feel more at ease about the process.
Some things to remember:
Now, you are ready to file and pay your sales tax in North Dakota. If you have any more questions, feel free to contact us.
Please note: This blog is for informational purposes only and the information is accurate as of 9/20/2019. 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.
18 min read
🎲🎰🤑 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...
17 min read
Nebraska, the Cornhusker state, has been the source of many keys to modern life. The concept and first implementation of 911 hails from the state, as...
18 min read
North Carolina is a treasured coastal state with a bountiful geographic expanse including some of the most beautiful beaches in the country. Many...