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Learn the fundamentals of sales tax
Do you need to collect sales tax in Kansas?
You’ll need to collect sales tax in Kansas 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.
Do you have physical nexus in Kansas?
Kansas considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business
- An employee present in the state
- Goods in a warehouse
- Retailers selling goods at trade or craft shows and festivals
- Non-resident contractors performing labor services in the state
You can click here to read exactly what the Kansas Department of Revenue (Kansas’s taxing authority) has to say about what constitutes sales tax nexus in Kansas.
Do you have economic nexus in Kansas?
Beginning July 1, 2021, remote e-commerce sellers who fit the following criteria are considered to have Kansas economic nexus:
- More than $100,000 of cumulative gross receipts from sales to customers in the state for the period of January 1, 2021, through June 30, 2021 or
- More than $100,000 of cumulative gross receipts from sales to customers in the state during the current or immediately preceding calendar year
Is what you’re selling taxable?
Services in Kansas are generally not taxable. However – if the service you provide includes installing, repairing, altering, or maintaining a product, you may have to deal with the sales tax on products.
Tangible products are taxable in Kansas, with a few exceptions. These exceptions include computer software, meals and drinks, and construction materials.
For customer exemption certificates for Kansas and other states, consult this guide.
Is SaaS taxable in Kansas?
SaaS is non-taxable. In Kansas, SaaS providers are referred to as “Application Service Providers” (ASPs). (Source)
How to get a sales tax permit in Kansas
Visit the Kansas Department of Revenue for online registration. You can also fill out your sales tax registration form and send it to:
Kansas Department of Revenue
915 SW Harrison St.
Topeka, KS 66612-1588
Check out this handy publication for instructions on registering your business in Kansas.
Note: Kansas asks that you file for your sales tax license 3-4 weeks before you plan to start actually making sales in the state.
You need this information to register for a sales tax permit in Kansas:
- Reason for application
- Tax type
- Business info including name, address, phone, parent company, subsidiaries
- Location information
- Annual Kansas sales estimation
- Other questions about the nature of your business (if you’re connected to construction, natural gas, etc.)
There is no fee for the sales tax permit in Kansas. Other business registration fees may apply.
Collecting Sales Tax
Sellers in Kansas should charge sales tax based on the buyer’s destination.
You can look up the local sales tax rate with TaxJar’s Sales Tax Calculator. The state sales tax rate in Kansas is 6.5%. In Wichita, the local sales tax rate is 1% (for Sedgwick County); the total sales tax rate is 7.5%.
Sellers based out-of-state also charge sales tax based on the destination of the buyer.
Should you collect sales tax on shipping charges in Kansas?
Shipping and handling are always taxable in Kansas, no matter whether the item shipped is taxable or not.
Read a full explanation of sales tax on shipping in Kansas here.
When are Returns Due?
When you file and pay Kansas sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Kansas?
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 Kansas, you will be required to file and remit sales tax either monthly, quarterly, or annually.
Kansas sales tax returns are almost always due the 25th 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.
Important to note: Very high volume Kansas sellers may be required to make monthly sales tax prepayments. In these cases, the first 15 days of the current month’s liability is due on or before the 25th of that month. You can read more about Kansas sales tax prepayments here.
Filing Sales Tax
When it comes time to file sales tax in Kansas you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to Calculate How Much Sales Tax You Owe in Kansas
Calculating how much sales tax you should remit to the state of Kansas is easy with TaxJar’s Kansas sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Kansas sales tax return will be waiting for you in TaxJar. All you have to do is login.
How to File and Pay Sales Tax in Kansas
You have three options for filing and paying your Kansas sales tax:
- File online – File online at the Kansas Department of Revenue. You can remit your payment through their online system. (If you’ve never used this system before, you may have to contact the Kansas Department of Revenue for your access code.)
- File by mail – You can use Form ST-16 for single jurisdiction filers or Form ST-36 for multiple jurisdiction filers and file and pay through the mail.
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.