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FAQ Articles

When is a mail-order company responsible for the collection of North Dakota sales tax?

If a mail order company has sufficient physical presence in North Dakota, sales tax must be applied to all sales of tangible personal property delivered into North Dakota. This includes sales made through the company’s Internet website. Purchases delivered outside of North Dakota are sales in interstate commerce, which are not subject to North Dakota sales tax.

Mail order and Internet sales made to North Dakota customers by a company located outside of North Dakota are subject to sales or use tax in North Dakota if the company has sufficient physical presence in the state either on a temporary or permanent basis. Sufficient presence to register and collect the tax may include, but is not limited to, owning property (i.e., warehouse, repair facility, lease or rental equipment) or having employees or agents working in this state.

A purchaser located in North Dakota is required to remit use tax on the cost of an out-of-state purchase even though the vendor did not collect any appropriate tax. The purchaser should report use tax on a One-Time Remittance Form and should also refer to the Local Option Taxes Guideline for determining if local tax applies to the purchase.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

When is a mail-order company responsible for the collection of North Dakota sales tax?

If a mail order company has sufficient physical presence in North Dakota, sales tax must be applied to all sales of tangible personal property delivered into North Dakota. This includes sales made through the company’s Internet website. Purchases delivered outside of North Dakota are sales in interstate commerce, which are not subject to North Dakota sales tax.

Mail order and Internet sales made to North Dakota customers by a company located outside of North Dakota are subject to sales or use tax in North Dakota if the company has sufficient physical presence in the state either on a temporary or permanent basis. Sufficient presence to register and collect the tax may include, but is not limited to, owning property (i.e., warehouse, repair facility, lease or rental equipment) or having employees or agents working in this state.

A purchaser located in North Dakota is required to remit use tax on the cost of an out-of-state purchase even though the vendor did not collect any appropriate tax. The purchaser should report use tax on a One-Time Remittance Form and should also refer to the Local Option Taxes Guideline for determining if local tax applies to the purchase.

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