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

FAQ Articles

Are sales of tangible personal property to out-of-state residents subject to North Dakota sales tax?

Sales of tangible personal property shipped by the seller to out-of-state customers are not subject to North Dakota sales tax. The sales are reported on the North Dakota Sales, Use, and Gross Receipts Tax Return as nontaxable sales.

Sales of over-the-counter goods picked up in North Dakota by the buyer are subject to North Dakota sales tax even though the goods are removed from the state for use outside the state. An exception is made for qualifying purchases made by persons from Montana who sign a Certificate of Purchase.

The North Dakota retailer may be aware the purchased goods will be shipped to an out of state destination, even though the purchaser’s designated agent takes title to the goods in North Dakota, but the goods are transported to a destination outside of this state. The North Dakota retailer when making such a sale should reference the out of state destination on their sales invoice.

North Dakota retailers that deliver goods to customers outside of North Dakota may be required to collect tax on behalf of the state into which the retailer delivers. Retailers who make deliveries into other states should contact that state for details regarding sales tax due in that state. If the retailer is not required to collect that state’s sales tax, the buyer may be required to remit a use tax to the state where delivery is made if that state has a use tax law.

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

Are sales of tangible personal property to out-of-state residents subject to North Dakota sales tax?

Sales of tangible personal property shipped by the seller to out-of-state customers are not subject to North Dakota sales tax. The sales are reported on the North Dakota Sales, Use, and Gross Receipts Tax Return as nontaxable sales.

Sales of over-the-counter goods picked up in North Dakota by the buyer are subject to North Dakota sales tax even though the goods are removed from the state for use outside the state. An exception is made for qualifying purchases made by persons from Montana who sign a Certificate of Purchase.

The North Dakota retailer may be aware the purchased goods will be shipped to an out of state destination, even though the purchaser’s designated agent takes title to the goods in North Dakota, but the goods are transported to a destination outside of this state. The North Dakota retailer when making such a sale should reference the out of state destination on their sales invoice.

North Dakota retailers that deliver goods to customers outside of North Dakota may be required to collect tax on behalf of the state into which the retailer delivers. Retailers who make deliveries into other states should contact that state for details regarding sales tax due in that state. If the retailer is not required to collect that state’s sales tax, the buyer may be required to remit a use tax to the state where delivery is made if that state has a use tax law.

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