Our work is reader-supported, meaning that we may earn a commission from the products and services mentioned.

How To Register For A Kentucky Sales Tax Permit

How To Register For A Kentucky Sales Tax Permit

Advertising Disclosure

Advertising
Disclosure

How To Register For A Kentucky Sales Tax Permit

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

The sales tax permit is obtained through the Kentucky Department of Revenue as part of the Kentucky Tax Registration Application. In addition to registering for sales and use tax, a business can also register for employers’ withholding tax and various other registrations.

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.

Also See: Guide to starting a business in Kentucky

Who needs a sales tax permit in Kentucky?

A business must register for a sales tax permit in Kentucky 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.
  • Occasionally selling items at craft shows, fairs, seminars, conventions, etc. in Kentucky
  • Hiring employees in Kentucky (including remote employees, sales representatives, or agents)
  • Renting or leasing tangible or digital property
  • An online business located in Kentucky is selling taxable products to Kentucky residents
  • A remote seller sells over $100,000 in physical goods or has over 200 transactions annually to residents in Kentucky

What products and services are taxable in Kentucky?

Physical Products

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

  • Sale of tangible personal property – General merchandise like vehicles, furniture, appliances, and clothing
  • Lease or rentals of tangible personal property
  • Qualifying food, prescriptions, and medical appliances

Prescription drugs, some medical devices, and food/food items (with the exception of candy, soft drinks, and prepared foods) are tax-exempt.

Digital Products

Digital products are taxable in Kentucky.

Services

Most services aren’t taxable in Kentucky, however, there are a few exceptions, some of which include:

  • Admissions (concerts, sporting events, etc.)
  • Memberships (gym, golf courses, etc.)
  • Short-term lodging
  • Installation of replacement parts for tangible property (auto repair shop, computer repair, furniture repair, etc.)
  • Production, fabrication, processing, or printing of tangible property (sign making, window tinting, embroidery, screen printing, engraving, etc.)
  • Landscaping services
  • Janitorial services
  • Small animal veterinary services
  • Pet care services (pet grooming or pet boarding)
  • Dry cleaners
  • Indoor skin tanning services

How to register for a sales tax permit in Kentucky

A sales tax permit can be obtained by filling out the Kentucky Tax Registration Application online through the Kentucky Business One Stop or by mailing in the 10A100 Form.

Information needed to register includes:

  • The effective date of the business starting, hiring employees or selling products, or offering taxable services
  • Legal business name
  • Doing Business As Name (DBA)
  • Federal Employer Identification Number (FEIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
  • Kentucky Commonwealth Business Identifier
  • Secretary of State of State Organization Number
  • Primary business location address and phone number
  • Business operations (home-based, web-based, office/store-based, transient)
  • Accounting period (calendar year or fiscal year)
  • Accounting method
  • Type of business entity: sole proprietorship, general partnership, Limited Liability Partnership, corporation, Limited Liability Company (LLC)
  • Name, social security number, driver’s license number, and addresses of owners/officers/members
  • Description of what products or services are being sold
  • North American Industry Classification System (NAICS) code
  • Estimated monthly sales tax collected
  • Employee information

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax, which it then sends to the Kentucky Department of Revenue.

How much is sales tax in Kentucky?

The statewide sales tax rate in Kentucky is 6%. There are no additional local, municipal, city, or county taxes.

When are Kentucky sales tax returns due?

The Department of Revenue will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, semiannually, or annually. Generally, a business selling over $1,200 monthly in taxable sales will file 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, 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.

Kentucky Sales Tax Permit FAQs

How much does a Kentucky sales tax permit cost?

There is no cost for a sales tax permit in Kentucky.

How long does it take to get a Kentucky sales tax account number?

Expect 2-3 weeks to receive your Kentucky sales tax number.

Do you have to renew your Kentucky sales tax permit?

The sales tax 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, those changes need to be updated with the Department of Revenue.

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 Kentucky

How do I get a wholesale license in Kentucky?

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 of the item.

Wholesalers and distributors will require a sales tax number and a completed Kentucky Resale 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.

If you have questions about the sales tax permit, the Kentucky Department of Revenue has a guide to sales taxes in Kentucky or can be contacted:

Kentucky Taxpayer Service Center
Department’s Division of Sales and Use Tax
PO Box 181
Frankfort, KY 40602-0181
Phone: 502-564-5170

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 Kentucky Sales Tax Permit

How To Register For A Kentucky Sales Tax Permit

Leave a Reply

Your email address will not be published. Required fields are marked *

Some (but not all) of the links on StartUp101.com are affiliate links. This means that a special tracking code is used and that we may make a small commission on the sale of an item if you purchase through one of these links. The price of the item is the same for you whether it is an affiliate link or not, and using affiliate links helps us to maintain this website.

StartUp101.com is also a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Our mission is to help businesses start and promoting inferior products and services doesn’t serve that mission. We keep the opinions fair and balanced and not let the commissions influence our opinions.