o Sells products to customers into Minnesota, using the Internet, mail order, or telephone, without having a physical presence in that state and does not meet the small seller exemption o Has 200 or more retail sales shipped to Minnesota over a period of 12 consecutive months o Has retail sales shipped to Minnesota that total more than $100,000 over a period of 12 consecutive months o Has an employee, representative, agent, or independent contractor that does work on behalf of the retailer in Minnesota o Facilitates the sale of taxable goods or services to customers in Minnesota on behalf of a business o Delivers items into Minnesota in your own vehicles o Provides taxable services in Minnesota o Owns property in Minnesota o Keeps inventory in a fulfillment center in Minnesota o Is an affiliate of a Minnesota retailer that promotes or provides other services to you and your business and the retailer are related parties o Enters into an agreement with a Minnesota resident for a commission or similar consideration and directly or indirectly refers potential customers to the seller through website links or otherwise If you do not make taxable sales, but make purchases subject to use tax, you must register to remit use tax. For more information on who needs to register, see Who Needs to Register? and Registering Your Business or call 651-296-6181 or 800-657-3777. To obtain a Minnesota Tax ID Number, go to Business Tax Registration or call 651-282-5225 or 800-657-3605. MINNESOTA SALES TAX Minnesota has a 6.875 percent general sales tax rate. The sales tax applies to retail sales of taxable services, tangible personal property or specific digital products made in Minnesota. Businesses collect and remit the sales tax due on items and services sold at retail on behalf of the state. Most retail sales are taxable in Minnesota. A “retail sale” means any sale, lease or rental of tangible personal property for any purpose other than resale, sublease or subrent. A retail sale also includes services for any purposes other than for resale. However, some sales are specifically exempted by law from the sales and use tax. These exemptions are discussed later in this section. The Minnesota Department of Revenue has the Minnesota Sales and Use Tax Business Guide and Sales Tax Fact Sheets and Industry Guides.
225
Made with FlippingBook - Online Brochure Maker