Nevada Sales Tax Guide

Traditional Goods or Services

Goods that are subject to sales tax in Nevada include physical property, like furniture, home appliances, and motor vehicles.

Prescription medicine, groceries, and gasoline are alltax-exempt.

Digital Goods or Services

A digital good or service is anything electronically delivered, such as an album downloaded from iTunes or a film purchased from Amazon.

Nevadadoes notrequire businesses to collect sales tax on the sale of digital goods or services.

However, Nevada has one exception to this policy. Businesses must collect sales tax on pre-written computer software that is sold online.

Save Money with a Resale Certificate

With aresale certificate, also known as a reseller's permit, your business does not have to pay sales tax when purchasing goods for resale.

Store Sales

For traditional business owners selling goods or services on-site, calculating sales tax is easy: all sales are taxed at the rate based on the location of the store.

Here's an example of what this scenario looks like:

Mary owns and manages a bookstore in Sparks, Nevada. Since books are taxable in the state of Nevada, Mary charges her customers a flat-rate sales tax of 7.725% on all sales. This includes Nevada’s state sales tax rate of 4.600%, Washoe county’s sales tax rate of 2.875%, and Mary’s local district tax rate of 0.250%.

In-State Sales

The state of Nevada follows what is known as adestination-basedsales tax policy. This means that long-distance sales within Nevada are taxed according to the address of the buyer. This policy applies to state, county, and city sales taxes.

Consider the following example:

Steve runs his own business selling electronics on eBay out of his home in Fallon, Nevada. A customer living in Mesquite, Nevada finds Steve’s eBay page and purchases a $350 pair of headphones. When calculating the sales tax for this purchase, Steve applies the 4.6% state tax rate for Nevada plus 3.55% for Clark county’s tax rate. At a total sales tax rate of 8.15%, the total cost is $378.53 ($28.53 sales tax).

Out-of-State Sales

Nevada businesses only need to pay sales tax on out-of-state sales if they havenexusin other states.Nexusmeans that the business has a physical presence in another state.

Common types ofnexusinclude:

• Aphysical location,如办公室、商店或仓库
• Anemployee远程工作或旅行销售代表是谁resentative
• Amarketing affiliate
• Drop-shippingfrom a third party seller.
• Atemporary physical location,including festival and fair booths.

How to File

Nevada requires businesses to file sales tax returns and submit sales tax payments online.

How Often Should You File?

How often you need to file depends upon the total amount of sales tax your business collects.

• Annual filing:If your business has sales of less than $1,500 per month then your business should elect to file returns on an annual basis.
• Quarterly filing:If your business collects between $1,500 and $10,000 in sales tax per month then your business should elect to file returns on a quarterly basis.
• Monthly filing:If your business collects more than $10,000 in sales tax per month then your business should file returns on a monthly basis.

Filing Deadlines

All Nevada sales tax return deadlines fall on thelast day of the month, unless it is a weekend or federal holiday, in which case the deadline is moved back to the next business day. Below is a list of this year’s filing deadlines:

Penalties for Late Filing

Nevada charges alate payment penaltybased on the number of days the payment is late. If the payment is:

• 1-10 days late
• A penalty of 2% will be added to the amount of tax that is due.
• 11-15 days late
• A penalty of 4% will be added to the amount of tax that is due.
• 16-20 days late
• A penalty of 6% will be added to the amount of tax that is due.
• 21-30 days late
• A penalty of 8% will be added to the amount of tax that is due.
• 31+ days late
• A maximum penalty of 10% will be added to the amount of tax that is due.

The state assesses the unpaid tax with a compounded interest rate of 3.75% per year or 0.31% per month or partial month for any unpaid tax or penalty.