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How To Register For A Kansas Business Tax License

How To Register For A Kansas Business Tax License

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How To Register For A Kansas Business Tax License

When starting a business in Kansas, there are several registrations to take care of. The most common is the Kansas Business Tax License, which is sometimes referred to as a retailer certificate, seller’s permit, sales tax permit, sales and use tax number, or sales tax registration.

Keep reading to learn who needs a Kansas Business Tax License, 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 Kansas

Who needs a Business Tax License in Kansas?

A business must register for a Business Tax License in Kansas when:

  • A business has a 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.
  • Occasionally selling items at craft shows, fairs, seminars, conventions, etc. in Kansas
  • Hiring Kansas employees (including remote employees, sales representatives, or agents)
  • A business located in Kansas is selling taxable services and products to Kansas residents
  • Remote sellers shipping products to Kansas residents.

What products and services are taxable in Kansas?

Physical Products

There are a few exceptions, but almost all physical products are taxable when sold at retail in Kansas. Common examples include:

  • General merchandise like furniture, appliances, and clothing
  • Titled or registered items like vehicles

Prescriptions, some medical equipment, and certain manufacturing equipment are tax-exempt.

Digital Products

Digital products, with the exception of canned software (pre-made software), aren’t taxable.

Services

Most services aren’t taxable in Kansas, however, if the service installs, alters, repairs, services or maintains tangible personal property in the state of Kansas, sales tax will be charged. A few examples include:

  • Vehicle repair
  • Vehicle detailing
  • Generally, contractors such as plumbers, painters, and landscapers have taxable services, but contractors who pay sales or use tax on their materials and supplies and who work exclusively on residential property are not taxable.
  • Furniture refinishing
  • Sewing and alterations
  • Dry cleaning
  • Pet grooming
  • Admissions to amusement, entertainment, or recreation services

More information about what is taxable in Kansas is available from the Kansas Department of Revenue.

How to register for a Business Tax License in Kansas

A Kansas Business Tax License can be obtained by registering through the Kansas Department of Revenue or by mailing in the CR-16 Form.

Information needed to register includes:

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business, which is then sent to the Kansas Department of Revenue.

How much is sales tax in Kansas?

The state of Kansas imposes a statewide Retailers’ Sales Tax of 6.5% plus local sales taxes on the:

  • Retail sale, rental, or lease of physical goods
  • Services to install, apply, repair, service, alter, or maintain goods
  • Admission to places that provide entertainment, amusement, or recreation

The sales tax rate that is charged varies depending on the address of the business if the purchase is made or shipped from a business located in the state or where the transaction took place, such as a fair or tradeshow.

In addition to the statewide tax, there are additional local sales taxes that may be added by cities and counties. To find the sales tax for your location, see the sales tax rate locator from the Kansas Department of Revenue.

When are Kansas sales tax returns due?

The Department of Revenue will determine a filing frequency based on the expected volume of annual sales, which will be monthly, quarterly, and annually. Generally, a business selling over $3,201 monthly will file monthly.

The due date for filings is the 25th day of the month following the reporting period unless the 25th falls on a weekend or federal holiday, which would move to the next business day.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Kansas Business Tax License FAQs

How much does a Business Tax License cost in Kansas?

There is no fee to get a Business Tax License in the state of Kansas.

How long does it take to get a Kansas Business Tax License?

Expect up to 3-4 weeks to receive a Kansas Business Tax License and sales tax registration number.

Do you have to renew a Kansas Business Tax License?

The Business Tax License is a one-time registration, and no renewals are needed. However, if any information about the business changes, such as the mailing address, additional locations, or change in ownership, it must be updated with the Department of Revenue.

How do I get a wholesale license in Kansas?

A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge sales tax to the end-user or final buyer of the item.

Wholesalers and dealers will require a sales tax number and a completed Kansas Resale Exemption Certificate (also referred to as a wholesale license, seller’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.

Related: What business licenses are needed in Kansas

If you have questions about the Business Tax License, the Kansas Department of Revenue has a guide to sales taxes in Kansas or can be contacted by calling 785-291-3614.

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

How To Register For A Kansas Business Tax License

How To Register For A Kansas Business Tax License

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