SALES AND USE TAX
SALES AND USE TAX REGISTRATION If you make taxable retail sales or provide taxable services in Minnesota , you must get a Minnesota Tax ID and register to collect and remit sales and use tax before you make taxable sales. You must register and collect Minnesota sales tax if you have nexus (taxable presence) in Minnesota, even if your business is located in another state or sells online. You generally have sales tax presence in Minnesota if your business does any of the following:
• Has a physical location in Minnesota (office, store, warehouse, showroom). • Ships to Minnesota customers and, over any 12‑month period, either: • Has more than $100,000 in retail sales shipped to Minnesota, or • Has 200 or more separate retail sales shipped to Minnesota.
• Has employees, representatives, agents, or independent contractors working in Minnesota. • Stores inventory in Minnesota, including inventory in a third‑party fulfillment center. • Delivers items into Minnesota using your own vehicles.
• Provides taxable services in Minnesota. • Owns or leases property in Minnesota.
• Acts as, or sells through, a marketplace provider that facilitates sales to Minnesota customers. • Has affiliates or marketing arrangements with Minnesota residents that actively refer customers (for example, affiliate web links for a commission). If you do not make taxable sales but buy items or services that are taxable and no sales tax is charged, you must register to remit use tax . For more information, go to: Who Needs to Register?, Registering Your Business , obtain a Minnesota Tax ID Number - Business Tax Registration or call 651-282-5225 or 800-657-3605. MINNESOTA SALES TAX Minnesota’s state sales tax rate is 6.875 percent. It applies to retail sales of most tangible personal property, many taxable services, and certain digital products used in Minnesota. Businesses collect the tax from customers and send it to the state. A “retail sale” is generally any sale, lease, or rental to the end user , not for resale. Some sales are exempt by law; these are discussed below and in Department of Revenue fact sheets. Helpful resources from the Department of Revenue include:
• Minnesota Sales and Use Tax Business Guide • Sales Tax Fact Sheets and Industry Guides
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