Sales Tax Fundamentals
Get up to speed on the basics of sales tax
Do you need to collect sales tax in Nevada?
You’ll need to collect sales tax in Nevada 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 Nevada?
Nevada 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
- Ownership of real or personal property
- Delivery of merchandise in Nevada in vehicles
- Independent contractors or other representatives in Nevada
You can click here to read exactly what the Nevada Department of Taxation has to say about what constitutes sales tax nexus in Nevada
Do you have economic nexus in Nevada?
Effective October 1, 2018, Nevada 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 Nevada’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 Nevada are generally not taxable. However – if the service you provide is necessary to complete the sale of a tangible personal property, you may have to deal with the sales tax on products.
Tangible products are taxable in Nevada, with a few exemptions. These sales tax exemptions include groceries, prescription medicine and medical devices, and some machinery.
Is SaaS taxable in Nevada?
SaaS is non-taxable in Nevada. (Source)
How to get a sales tax permit in Nevada
Sellers are encouraged to use the Nevada Tax Center.
You can also download the Nevada Business Registration form and fill out the Supplemental Registration portion. Send it to:
Nevada Department of Taxation
1550 College Parkway
Carson City, Nevada 89706
This information is required to register for a sales tax permit in Nevada:
- DBA (as shown on the Nevada Business Registration form)
- Estimated total monthly receipts
- Estimated total Nevada monthly TAXABLE receipts
- Reporting cycle choice
- Total Nevada business locations
- Information for business registration, such as Social Security Number, address, list of owners, partners, and description of your business
The state of Nevada charges $15.00 per application for a sales tax permit. Other business registration fees may apply.
Collecting Sales Tax
The sales tax rate you collect in Nevada depends on where your product is headed, as Nevada is a destination-based state.
How to Collect Sales Tax in Nevada if you are Based in Nevada
Nevada is a destination-based sales tax state. So if you live in Nevada, collecting sales tax is based on where your customer lives.
You can look up the local sales tax rate with TaxJar’s Sales Tax Calculator.
How to Collect Sales Tax in Nevada if you are Not Based in Nevada
Similarly, Nevada wants sellers who are based outside of Nevada but made a sale into Nevada from outside the state to charge sales tax based on the destination of the buyer.
Should you collect sales tax on shipping charges in Nevada?
Most eCommerce sellers will be required to charge sales tax on shipping charges in Nevada.
Read a full explanation of sales tax on shipping in Nevada here.
When are Returns Due?
When you file and pay Nevada 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 Nevada?
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 Nevada, you will be required to file and remit sales tax either monthly, quarterly, or annually.
Nevada 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.
Filing Sales Tax
When it comes time to file sales tax in Nevada you must do two 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 Nevada
Calculating how much sales tax you should remit to the state of Nevada is easy with TaxJar’s Nevada 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 Nevada 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 Nevada
You have three options for filing and paying your Nevada sales tax:
- File online File online at the Nevada Department of Taxation. You can remit your payment through their online system.
- File by mail You can use Form TXR-01.01c 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.