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Learn the fundamentals of sales tax
Do you need to collect sales tax in Nebraska?
You’ll need to collect sales tax in Nebraska 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 Nebraska?
Nebraska considers a seller to have physical nexus if you have any of the following in the state:
- An office or place of business
- Employees, agents, sales people, contractors, etc. present in the state
- Ownership of or goods in a warehouse, storage facility, etc.
- Deriving receipts from rental or lease of property
You can click here to read exactly what the Nebraska Department of Revenue has to say about what constitutes sales tax nexus in Nebraska.
Do you have economic nexus in Nebraska?
Effective January 1, 2019, Nebraska considers vendors who make more than $100,000 in sales annually in the state or more than 200 transactions 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 Nebraska’s economic nexus guidance for sellers here and you can read more about economic nexus in every state here.
Is what you’re selling taxable?
Services in Nebraska are generally not taxable. However – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Tangible products (also referred to as tangible personal property) are taxable in Nebraska, with a few exemptions. These exceptions include certain prescription medicine and medical devices. You can find the Nebraska Resale or Exempt Sale Certificate for Sales Tax Exemptions on the Nebraska Department of Revenue’s site.
Is SaaS taxable in Nebraska?
SaaS is non-taxable in Nebraska. (Source)
How to get a sales tax permit in Nebraska
Register for a Nebraska sales tax license online.
To register for your sales tax license manually, complete the first page and the Sales & Use Tax portion of the Nebraska Tax Application, Form 20, and mail or fax it to the Department of Revenue:
Nebraska Department of Revenue
PO Box 98903
Lincoln, NE 68509-8903
You will need this information to register for a sales tax permit in Nebraska?
- Personal identification info (SSN, address, etc.)
- Business identification info (EIN, address, etc.)
- Business entity type
- Accounting basis (cash, accrual or other) and period (fiscal year, calendar year, etc.)
- Description of your business and/or products
It’s free to apply for a Nebraska sales tax license, but other business registration fees may apply.
Collecting Sales Tax
Nebraska is a destination-based sales tax state. So no matter if you live and run your business in Nebraska or live outside Nebraska but have nexus there, you would charge sales tax at the rate of your buyer’s ship-to location.
Nebraska has a state sales and use tax rate of 5.5%. You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator.
Should you collect sales tax on shipping charges in Nebraska?
Shipping charges are taxable in Nebraska, even if listed separately from the price of the item being sold.
Read a full explanation of sales tax on shipping in Nebraska here.
When are Returns Due?
When you file and pay Nebraska 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 Nebraska?
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 Nebraska, you will be required to file and remit sales tax either monthly, quarterly, or annually.
Nebraska sales tax returns are always due the 20th 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.
Filing Sales Tax
When it comes time to file sales tax in Nebraska 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 Nebraska
Calculating how much sales tax you should remit to the state of Nebraska is easy with TaxJar’s Nebraska 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 Nebraska sales tax return will be waiting for you in TaxJar. Try a 30-day free trial of TaxJar today.
How to File and Pay Sales Tax in Nebraska
You have three options for filing and paying your Nebraska sales tax:
- File online – File Form 10 online at the Nebraska Department of Revenue. You can also remit your payment through Nebraska E-Pay.
- File by mail – You can use Form 10 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.