RATE OF SALES TAX:
6.85%
LOCAL & COUNTY MAXIMUM RATES:
1.53%
Table of Contents
What are the taxable goods and services?
The first step in sales tax compliance is determining if the items or services your firm offers are taxable in Nevada.
Traditional Products and Services
Physical property, such as furniture, household appliances, and automobiles, is subject to sales tax in Nevada.
Prescription drugs, food, and fuel are all free from sales tax.
Digital Products and Services
A digital item or service is anything that is supplied electronically, such as a music downloaded from iTunes or a movie bought from Amazon.
Businesses in Nevada are not required to collect sales tax on the sale of digital products or services.
Nevada, however, has one exemption to this prohibition. Businesses are required to collect sales tax on pre-written computer software offered online.
How to Apply for Nevada Sales Tax
If you have concluded that you must charge sales tax on part or all of the products and services that your company sells, the next step is to apply for a seller’s licence.
This enables your company to collect sales tax on behalf of the municipal and state governments.
You will need the following information to register:
DBA (as indicated on the Nevada Business Registration form) (as shown on the Nevada Business Registration form)
Total monthly revenues estimated
Estimated total monthly TAXABLE revenues in Nevada
Optional reporting cycle
Total number of Nevada business locations
Information for company registration, such as your Social Security number, address, list of owners and partners, and business description
A Resale Certificate might help you save money.
When acquiring items for resale, your firm does not have to pay sales tax if you obtain a resale certificate, also known as a reseller’s permit.
Sales Tax Collection
After obtaining your seller’s licence and starting your company, you’ll need to figure out how much sales tax to charge various consumers. It is critical for company owners to collect the right rate of sales tax to avoid penalties and the danger of expensive audits.
When computing sales tax, consider the following types of transactions:
Store Sales Shipping Within-State Sales Outside-State Sales
Retail Sales
For conventional company owners who sell products or services on-site, calculating sales tax is simple: all sales are taxed at the rate determined by the store’s location.
Here’s an illustration of how this situation may look:
Mary is the owner and manager of a bookshop in Sparks, Nevada. Because books are taxable in Nevada, Mary charges her clients a flat-rate sales tax of 7.725% on all purchases. This includes the 4.600% Nevada state sales tax, the 2.875% Washoe county sales tax, and the 0.250% Mary local district tax.
Sales inside the state
The state of Nevada has a policy known as a destination-based sales tax. This implies that long-distance purchases inside Nevada are taxed based on the buyer’s address. This regulation applies to sales taxes levied by the state, county, and city.
Consider the following scenario:
Steve operates his own eBay electronics company from his home in Fallon, Nevada. A buyer from Mesquite, Nevada discovers Steve’s eBay website and buys a $350 set of headphones. Steve uses the Nevada state tax rate of 4.6% plus the Clark county tax rate of 3.55% when computing the sales tax for this transaction. The total cost is $378.53 ($28.53 sales tax) at an 8.15% total sales tax rate.
Out-of-State Purchases
Nevada firms must only pay sales tax on out-of-state sales if they have a presence in other states.
Nexus indicates that the company has a physical presence in another state.
Common nexus types include:
A physical place, such as an office, retail shop, or warehouse.
An employee who works from home or as a roaming sales representative.
An affiliate marketer
Dropshipping from a third-party vendor.
A temporary physical site, such as a festival or fair booth.
Submit Your Sales Tax Return
You’re ready to submit your sales tax return now that you’ve obtained your Nevada seller’s permit and understand how to charge the correct amount of sales tax to all of your customers. You avoid penalties and fines, be sure to meet all filing dates.
How to File a Claim
Businesses in Nevada are required to file sales tax forms and make sales tax payments online.
How Frequently Should You File?
The frequency with which you must submit is determined by the total amount of sales tax collected by your firm.
Annual filing: If your company’s monthly revenues are less than $1,500, you should submit returns on an annual basis.
Quarterly filing: If your company receives between $1,500 and $10,000 in sales tax every month, you should choose to submit quarterly returns.
Monthly filing: If your company receives more than $10,000 in sales tax every month, you must submit monthly returns.
Deadlines for Filing
The deadline for all Nevada sales tax returns is the last day of the month, unless it is a weekend or federal holiday, in which case the deadline is postponed to the following working day. The following are the filing deadlines for this year:
Penalties for Filing Late
The number of days the payment is late is used to calculate the late payment penalty in Nevada. If the payment is as follows:
1 to 10 days late
A 2% penalty will be applied to the amount of tax owed.
11 to 15 days late
A 4% penalty will be applied to the amount of tax owed.
16-20 days behind schedule
A 6% penalty will be applied to the amount of tax owed.
21 to 30 days late
A 8% penalty will be applied to the amount of tax owed.
31 days or more late
A 10% penalty will be applied to the amount of tax that is owed.
For any unpaid tax or penalty, the state levies a compounding interest rate of 3.75% per year or 0.31% every month or half month.