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How To Register For A Nebraska Sales Tax Permit

How To Register For A Nebraska Sales Tax Permit

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How To Register For A Nebraska Sales Tax Permit

Most businesses starting in Nebraska selling a product or offering certain services will need to register for a Nebraska sales tax permit. This permit is also referred to as a seller’s permit, sales tax license, sales tax number, or sales tax registration.

The sales tax permit is obtained through the Nebraska Department of Revenue to apply for a Nebraska Tax ID Number.

Check out the rest of this guide to determine who needs a sales tax permit, what products and services are taxable, how to register for a permit, and reporting requirements.

Related: Guide to starting a business in Nebraska

How to register for a sales tax permit in Nebraska

A sales tax permit can be obtained by registering for a Nebraska ID Number online or by mailing in the Nebraska Tax Application (Form 20).

Information needed to register a new business includes:

  • Employer Identification Number (EIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
  • Doing Business As and legal name of the business
  • The physical and mailing address of the business
  • Names, addresses, and social security numbers of owners/officers/members
  • Type of business entity: sole proprietorship, general partnership, corporation, Limited Liability Company (LLC)
  • Accounting basis (cash or accrual)
  • Accounting period (calendar or fiscal)
  • Description of what products or services are being sold
  • Projected sales tax liability
  • Expected date of the first sale

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 Nebraska Department of Revenue.

How much is sales tax in Nebraska?

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 Nebraska. In addition to the statewide tax, there are additional sales taxes that may be added by cities and municipalities. When shipping in-state, the sales tax is based on the purchaser’s address.

To find sales tax rates throughout the state, see the sales tax rate finder from the Nebraska Department of Revenue.

When are Nebraska sales tax returns due?

The Department of Revenue will determine a filing frequency based on the expected sales volume, which will be monthly, quarterly, or annually. Generally, a business collecting over $3,000 each month 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.

Nebraska Sales Tax Permit FAQs

Who needs a Nebraska sales tax permit?

A business must register for a sales tax permit in Nebraska 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.
– Selling, leasing, or renting tangible personal property in Nebraska (includes occasionally selling items at craft shows, fairs, seminars, conventions, etc.)
– Providing taxable services in the state
Hiring employees who work in Nebraska (including remote employees, sales representatives or agents)
– An online business located in Nebraska is selling taxable products to Nebraska residents
– A remote seller sells over $100,000 in physical goods or has over 200 transactions annually to residents in Nebraska

What products and services are taxable in Nebraska?

Physical Products: There are a few exceptions, but almost all physical products are taxable when sold at retail in the state of Nebraska. Common examples include:

– General merchandise like furniture, appliances, and clothing
– Titled or registered items like vehicles
– Prescriptions, groceries, and certain manufacturing equipment are tax-exempt.

See the full list of sales tax exemptions in Nebraska.

Digital Products: Digital products are taxable in Nebraska.

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

– Pest control services
– Building cleaning and maintenance
– Towing
– Motor vehicle painting
– Car detailing
– Security services
– Animal specialty services like dog grooming
– Repair or maintenance services

See the full list of taxable services in Nebraska.

How much does a Nebraska sales tax permit cost?

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

How long does it take to get a Nebraska sales tax permit?

Expect up to 2 weeks to receive a Nebraska sales tax permit.

Do you have to renew a Nebraska 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 distinct purposes.

A business license authorizes the operation of a business within a particular jurisdiction, ensuring compliance with local laws and regulations. On the other hand, a sales tax permit enables a business to legally collect sales tax from customers, which is then remitted to the state government. Typically, businesses require both a license and a permit to operate fully within the law.

Related: What business licenses are needed in Nebraska

How do I get a wholesale license in Nebraska?

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 fill out the Nebraska 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 Nebraska Department of Revenue has a guide to sales and use taxes in Nebraska or can be contacted by calling 800-742-7474 or 402-471-5729.

How To Register For A Nebraska Sales Tax Permit

How To Register For A Nebraska Sales Tax Permit

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