Any business that sells goods or taxable services within the state of North Dakota to customers located in North Dakota 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 North Dakota 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 the state of North Dakota?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct (Either temporary or permanent)
- You sell or ship products to a buyer in North Dakota
- Your business rents or leases tangible personal property
- You have employees physically present in North Dakota (including independent contractors, sales persons, representatives, or agents)
- Your business has economic presence (businesses who make over $100,000 in sales annually or more than 200 transactions)
- Your business has taxable services in the state of North Dakota
What constitutes taxable services in the state of North Dakota?
There are many service businesses that are taxable in North Dakota. These would include hospital and nursing home services, transportation services, furnishing services, repair services and janitorial services
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of North Dakota?
As a wholesale company conducting business in the state of North Dakota, 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?
Shipping and handling charges are taxable on taxable items even if you exclude it from the purchase price of the item being sold. If taxable and nontaxable items are being shipped together, you must pay sales tax for shipping on the percentage of the sale that’s taxable.
Is there sales tax on drop shipments in the state of North Dakota?
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 North Dakota are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain specific medical equipment, certain prescription medicines, raw materials, certain machinery and chemicals used in agriculture, motor vehicle leases and rentals, newspapers, and certain groceries are tax exempt
Register for a North Dakota sales/use tax number
North Dakota state, county, city, & municipal tax rate table