Any business that sells goods or taxable services within the state of Kansas to customers located in Kansas is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Kansas must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Kansas State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Kansas
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Kansas (including independent contractors, sales persons, representatives, or agents)
- Your business has a physical presence at a trade show in the state of Kansas
- Out of state contractors conducting labor services inside Kansas State
- Your business has taxable services in the state of Kansas
What constitutes taxable services in Kansas State?
The majority of service businesses are not taxable in Kansas. The exceptions would be service business that manufacture, fabricate, install, repair, alter or maintain goods.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Kansas?
As a wholesale company conducting business in the state of Kansas, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Kansas than you would charge sales tax on shipping and handling charges on the total sale price
Is there sales tax on drop shipments in the state of Kansas?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Kansas are exempt and therefor are required to have sales tax added
Are there any exemptions to taxable items sold?
Medical Devices, construction materials, raw materials and machinery custom downloadable software are tax exempt
Register for a Kansas sales/use tax number
Kansas state, county, city, & municipal tax rate table