If you’re ready to begin selling to customers in Nevada, you need to know about the state’s sales tax laws in order to make sure you know when to add tax to the purchase price of items and at what rate. The laws governing the collection and remittance of sales tax in Nevada follow the same general outline as those of most other states, but there are also plenty of details specific to the Battle Born State.
Nevada is a member of the Streamlined Sales and Use Tax Agreement (SSUTA), which means it follows certain rules regarding how its sales tax laws and registration processes are structured. It also means that you can register for a Nevada Sales Tax Permit through the SSUTA’s website at the same time that you register with all the other members. Of course, while all SSUTA’s member states follow some basic guidelines, their specific tax laws are all different, and so you need to know the specifics of each to ensure you’re in full compliance everywhere you make sales.
The state sales tax rate in Nevada is 4.6%. The addition of various local sales taxes can bring the effective rate as high as 8.265% in some parts of the state, and because all local tax jurisdictions do add their own tax, the lowest effective tax rate is 6.85%. This isn’t a huge variation, and so no matter where your customers are located, you’ll have a good idea of the range of tax you’ll need to add.
Nevada is a destination based state, which means the applicable total rate will be that of the final delivery address of the purchased goods if you’re shipping from out-of-state. Brick and mortar stores in Nevada will add the tax rate in effect at their physical location for in-person purchases regardless of where the customer actually lives.
Just as in other states, you are only liable for collecting and remitting Nevada sales tax on purchases to customers in the state if you have a nexus there. This is defined as a significant presence, and it can be triggered by the following conditions:
It’s worth noting that having goods stored in an amazon fulfillment center in Nevada does trigger a nexus condition for you, and Amazon has fulfillment centers in the state. That means that if you use fulfillment by Amazon, you likely have a nexus and so an obligation to collect and remit sales tax on purchases shipped to customers in Nevada.
It’s important to remember, too, that once a nexus condition has been triggered, it applies to all sales you make into the state, regardless of the route. So if it’s having goods stored in the Amazon warehouse that creates your nexus, you still have to collect sales tax on purchases made through other ecommerce platforms.
If you do have a sales tax nexus in Nevada, you need to determine if what you’re selling is taxable under state law. In general, sales tax in Nevada applies to nearly all tangible personal property that is transferred from one entity to another for value. That includes, but is not limited to, things like:
Leases and rentals of tangible personal property are also taxable, as are handling, packaging, and crating charges, regardless of whether they’re included in the total purchase price of the item or listed separately on the invoice. Delivery, transportation, and freight charges are not taxable, however, while services necessary to complete the sale of taxable personal property are subject to sales tax.
Exceptions to the state sales tax include:
Items purchased for resale are also not taxable, but the buyer must obtain a resale certificate from the state prior to the sale, and that certificate must be presented to the seller at the time of purchase.
Before you can begin collecting sales tax from your Nevada customers, you need to register with the state and obtain a Nevada Sales Tax Permit. This can be done online, either through the SSUTA website or directly through the Nevada Department of Taxation. The fee for a permit is $15.00, and you will need one permit per location if you have more than one physical store or office within the state.
Security deposits are also generally required when you’re filing for a Nevada Sales Tax Permit for the first time. The size of the required deposit depends on your filing frequency, and generally you’ll fall into one of the following categories:
If your tax liability per year is estimated to be less than $1,000, no deposit is required. After three years of timely filing and payment of your Nevada state sales tax, you may request a refund of the deposit and that the requirement be waived. Filing of your Nevada sales tax return can be done online or through the mail, and you can pay either way as well. Checks and money orders are accepted through the mail, while EFT and credit card payments are options for paying online.
When you apply for your Nevada Sales Tax Permit, you’ll be assigned a filing frequency by the state based on your estimated tax liability. Most sellers will fall into the quarterly filing category, which applies if you have taxable sales in the state of $10,000 or less per month. Total average sales above that threshold will require monthly filing and payment, and if you have total sales of less than $1,500 for the previous year, you may file annually.
Returns and payments are due on the last day of the month following the close of the period in question. If that falls on a weekend or holiday, returns and payments will be considered timely as long as they are postmarked or received electronically by the following business day.
|January – March (Q1)||April 30|
|April – June (Q2)||July 31|
|July – September (Q3)||October 31|
|October – December (Q4)||January 31|
The due date for annual filers is January 31st of the following year.
Zero returns are required in Nevada, which means that even if you have no taxable sales for a given period, you must still file a return as long as you have a valid Nevada Sales Tax Permit. Penalties are assessed for late filing or payment at the following rates:
The maximum penalty is 10% of the total tax due, and there is interest charged as well at a rate of 0.75%.
One of the most challenging things about staying compliant with state sales tax laws, in Nevada and elsewhere, is that they’re always subject to change. A locality might add a new tax, or existing statues might be expanded to include more goods and services. As a seller with customers in various states including Nevada, that’s only one of the many elements you need to keep track of in order to ensure you’re following all applicable state and local laws concerning sales tax.
Fortunately, TaxTools is a suite of software designed to manage all of this for you. With TaxTools, you can ensure you’re assessing tax at the appropriate rate onto all purchases, quickly pull up reports of your local taxable sales, separated by state, and even file and pay online. TaxTools will also keep track of any changes to the sales tax laws in Nevada or elsewhere that may apply to you, giving you confidence that you’re 100% compliant with all applicable statues at all times. TaxTools also integrates smoothly with all ecommerce platforms, so the only change you’ll notice in the way your business functions is how much smoother and efficient it is.
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