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Rauschenberger: Remote Sellers Required to Collect Sales Tax Beginning October 1, 2018

FOR IMMEDIATE RELEASE
Wednesday, July 11, 2018

Contact:  Jen Raab, Public Information Officer, 701.328.3039

Rauschenberger: Remote Sellers Required to Collect Sales Tax Beginning October 1, 2018

Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that remote sellers are required to be registered and begin collecting North Dakota sales and use tax beginning October 1, 2018.

Last month, the U.S. Supreme Court announced its ruling on the remote seller sales tax case South Dakota v. Wayfair. Remote sellers can now be required to collect sales taxes in states where they do not have physical presence.

“The 2017 North Dakota Legislature passed a law that expanded North Dakota sales tax collection requirements to include remote sellers,” Rauschenberger said. “Remote sellers will be required to begin collecting North Dakota sales tax on October 1, 2018, allowing them time to register and update their systems and software.  They may voluntarily begin collecting any time before the October 1 date.”

Small Seller Exception
Rauschenberger added that North Dakota’s law also has a small seller exception to relieve collection burdens on small businesses. Remote sellers will only be required to collect North Dakota sales tax if their taxable sales shipped to North Dakota meet or exceed $100,000 or 200 separate transactions in the previous calendar year.

“It is our mission to treat all of our taxpayers fairly, regardless of where they are located,” Rauschenberger stated. “We understand the impact that the Supreme Court’s decision will likely have on businesses and we are working to ensure a smooth transition for taxpayers who have this new collection responsibility.”

How to Register
The Office of State Tax Commissioner recommends the following two options for remote seller registration:

  • Remote Seller Makes Sales into Multiple States: Register through the Streamlined Sales Tax Registration System. North Dakota is one of 24 member states of the Streamlined Sales Tax program – a central, electronic registration system for all member states.
  • Remote Seller Makes Sales into North Dakota Only:  Register through North Dakota’s Taxpayer Access Point (TAP).

Additional details for remote sellers and Frequently Asked Questions (FAQs) may be found at www.nd.gov/tax/remoteseller.

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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News

Sign up to receive new releases via email.  Select the "ND Tax News" list.

 

Rauschenberger: Remote Sellers Required to Collect Sales Tax Beginning October 1, 2018

FOR IMMEDIATE RELEASE
Wednesday, July 11, 2018

Contact:  Jen Raab, Public Information Officer, 701.328.3039

Rauschenberger: Remote Sellers Required to Collect Sales Tax Beginning October 1, 2018

Bismarck, N.D. – Tax Commissioner Ryan Rauschenberger announced today that remote sellers are required to be registered and begin collecting North Dakota sales and use tax beginning October 1, 2018.

Last month, the U.S. Supreme Court announced its ruling on the remote seller sales tax case South Dakota v. Wayfair. Remote sellers can now be required to collect sales taxes in states where they do not have physical presence.

“The 2017 North Dakota Legislature passed a law that expanded North Dakota sales tax collection requirements to include remote sellers,” Rauschenberger said. “Remote sellers will be required to begin collecting North Dakota sales tax on October 1, 2018, allowing them time to register and update their systems and software.  They may voluntarily begin collecting any time before the October 1 date.”

Small Seller Exception
Rauschenberger added that North Dakota’s law also has a small seller exception to relieve collection burdens on small businesses. Remote sellers will only be required to collect North Dakota sales tax if their taxable sales shipped to North Dakota meet or exceed $100,000 or 200 separate transactions in the previous calendar year.

“It is our mission to treat all of our taxpayers fairly, regardless of where they are located,” Rauschenberger stated. “We understand the impact that the Supreme Court’s decision will likely have on businesses and we are working to ensure a smooth transition for taxpayers who have this new collection responsibility.”

How to Register
The Office of State Tax Commissioner recommends the following two options for remote seller registration:

  • Remote Seller Makes Sales into Multiple States: Register through the Streamlined Sales Tax Registration System. North Dakota is one of 24 member states of the Streamlined Sales Tax program – a central, electronic registration system for all member states.
  • Remote Seller Makes Sales into North Dakota Only:  Register through North Dakota’s Taxpayer Access Point (TAP).

Additional details for remote sellers and Frequently Asked Questions (FAQs) may be found at www.nd.gov/tax/remoteseller.

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