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You’ll need to collect sales tax in North Dakota if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
North Dakota considers a seller to have physical nexus if you have any of the following in the state:
You can click here to read exactly what the North Dakota Department of Revenue has to say about what constitutes sales tax nexus in North Dakota (p. 2) .
Effective October 1, 2018, North Dakota considers vendors who make more than $100,000 in sales in the state in the previous or current calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state. You can read North Dakota’s economic nexus guidance for sellers here .
Tangible products are taxable in North Dakota, with a few exceptions. These exceptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in agriculture. Excise tax may also applicable to the sale of motor vehicles and aircraft. More information on the excise tax and use taxes, consult the North Dakota state site .
Many services are also taxable with some exceptions. Check out these guidelines for information about which services are taxable and tax exempt in North Dakota .
SaaS is non-taxable in North Dakota.
Apply online at the North Dakota Taxpayer Access Point (TAP) . Or visit our registration page to request TaxJar manage your North Dakota registration for you.
You can also file by mail using the North Dakota Application for Income Tax Withholding and Sales and Use Tax Permit .
Send the completed form to:
Business Registration
600 E. Boulevard Ave., Dept 127
Bismarck, ND 58505-0599
Or email to: [email protected]
Or Fax to: 701.328.0332
This is the required information to register for a sales tax permit in North Dakota:
It’s free to apply for a sales tax permit, but other business registration fees may apply.
North Dakota is a destination-based sales tax state . So no matter if you live and run your business in North Dakota or live outside North Dakota but have nexus there, you would charge sales tax at the rate of your buyer’s ship-to location. The North Dakota sales tax rate is 5%.
To find the total sales tax rate, combine the North Dakota state sales tax rate of 5% and look up the local sales tax rate with TaxJar’s Sales Tax Calculator .
Should you collect sales tax on shipping charges in North Dakota?
Shipping charges are generally taxable in North Dakota.
Read a full explanation of sales tax on shipping in North Dakota here.
When you file and pay North Dakota sales tax depends on two things: your assigned filing frequency and your state’s due dates.
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state. In North Dakota, you will be required to file and remit sales tax either monthly, quarterly, semiannually or annually.
North Dakota sales tax returns are always due the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
When it comes time to file sales tax in North Dakota you must do three things:
Calculating how much sales tax you should remit to the state of North Dakota is easy with TaxJar’s North Dakota sales tax report.
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You have three options for filing and paying your North Dakota sales tax:
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