When starting a business in Idaho, there are several registrations to take care of. The most common is the Idaho seller’s permit, which is sometimes referred to as a retailer certificate, sales tax license, sales and use tax number, or sales tax registration.
The seller’s permit is obtained through the Idaho State Tax Commission as a part of the Idaho Business Registration application.
Keep reading to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what you need to do for reporting.
Related: Guide to starting a business in Idaho
Who needs a seller’s permit in Idaho?
A business must register for a seller’s permit in Idaho when:
- A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Renting or leasing property (excluding real estate) to a customer who uses that property in Idaho.
- Servicing tangible personal property in Idaho
- Having a salesman, agent, or representative who is physically selling, delivering, installing, or taking orders in the state.
- Making retail sales or selling certain services to Idaho residents
- An online business located in Idaho is selling taxable products to Idaho residents
- A remote seller selling over $100,000 of physical products to Idaho residents
What products and services are taxable in Idaho?
Physical Products
There are a few exceptions, but almost all physical products are taxable when sold at retail in Idaho. Common examples of exempt goods include:
- General merchandise like food, furniture, appliances, and clothing
- Titled or registered items like vehicles
Prescriptions are tax-exempt.
Digital Products
Digital products are mostly tax-exempt, with the exception of software the buyer has a permanent right to use, such as a video game, movie, or music.
Services
Most services aren’t taxable in Idaho, however, there are a few exceptions.
- Admission charges such as tickets to a movie, sporting event, or cover charges
- Membership fees for a gym
- Greens fees for a golf course
How to register for a seller’s permit in Idaho
To register for a regular seller’s permit, complete the Idaho Business Registration application online or by filling out the IBR-1 form.
Businesses making infrequent sales each year, such as at a craft show, fair, fireworks stand, etc., may opt for a Temporary Seller’s Permit. This type of permit is good for up to 90 days and up to three permits can be applied for per year.
Information needed to register includes:
- Type of business entity: sole proprietorship, general partnership, corporation, Limited Liability Company (LLC)
- Employer Identification Number (EIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
- Business name
- Date business began
- Date taxable sales will begin
- Estimated monthly taxable sales
- Business address and phone number
- What the business manufactures or sells
- Names and addresses of owners/officers/members
- Description of what products or services are being sold
- Employee information
After receiving the permit, the business must display it in a visible location. A business with multiple locations will receive a seller’s permit for each one.
Sales tax reporting
How is sales tax collected?
When a business makes a sale of a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business, which then sends it to the Idaho State Tax Commission.
How much sales tax is charged?
If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Idaho. In addition to the statewide tax, some resort cities and auditorium districts in Idaho add a local sales tax to purchases. When shipping in-state, the sales tax is based on the purchaser’s address.
To find the sales tax for your location, see the sales tax rate table from the Idaho State Tax Commission.
When are Idaho sales tax returns due?
The State Tax Commission will determine a filing frequency based on the expected volume of annual sales, which will be monthly, quarterly, semiannually, or annually. Generally, collecting over $9,000 annually in sales taxes will be filed monthly.
Filings are due on the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, in which case it would move to the next business day. Penalties and interest will be assessed for late filings.
Even if the business had no sales during the reporting period, a filing is still required indicating no sales occurred.
Idaho Seller’s Permit FAQs
How much does an Idaho seller’s permit cost?
There is no cost for a seller’s permit in the state of Idaho.
How long does it take to get an Idaho seller’s permit?
When registering online, expect to receive an Idaho sales tax permit in 10 days or 4 weeks when applying by mail.
Do you have to renew an Idaho seller’s permit?
The seller’s permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, needs to be updated by the Idaho State Tax Commission.
How do I get a wholesale license in Idaho?
A business is able to purchase items to resell and be exempt from paying state sales tax. The tax liability is passed from the distributor to the retailer, who will then charge sales tax to the end-user of the item.
Wholesalers and distributors will require an Idaho seller’s permit number and a completed Idaho Resale Certificate (also referred to as a wholesale license, reseller’s permit, or sales tax exemption certificate) to document that the items being purchased are for resale.
Is a business license the same thing as a sales tax license?
No – A business license and a sales tax permit serve different purposes and are not the same.
A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.
Generally, businesses require both a license and a permit to operate legally and handle taxes correctly.
If you have questions about the seller’s permit, the Idaho State Tax Commission has a guide to sales tax rules in Idaho or can be contacted by calling 208-334-5364.
