The Department of Revenue does not issue a physical sales tax permit. When you register, you receive a confirmation letter showing your registration for sales and use tax, which you should keep with your records. There is no requirement to post it at your business. MINNESOTA USE TAX Use tax is the companion to sales tax. It applies when you buy, lease, or rent taxable items or services that you use in Minnesota and no Minnesota sales tax was charged. The use tax rate is the same as the sales tax rate (6.875 percent), and it is applied to your cost for the item or service. Common situations where use tax is due include: • Buying items from an out‑of‑state or online seller that does not charge Minnesota sales tax, then using, storing, or consuming the items in Minnesota. • Taking items out of resale inventory for business or personal use. • Using items originally bought for an exempt production purpose in a way that is taxable. • Buying taxable items or services from a Minnesota seller that does not charge sales tax, then using them in a taxable way. • Giving away or donating items (including to nonprofits) that were originally bought without tax. Businesses registered for sales and use tax report their taxable purchases and use tax when they file their regular sales and use tax return electronically. Individuals who owe use tax file Form UT1, Individual Use Tax Return, due April 15 following the end of the calendar year; local use tax is also due if the item is used in an area with a local tax. See: Sales and Use Tax
FS146 – Use Tax for Businesses FS156 – Use Tax for Individuals Local Sales and Use Tax Guide
Local sales and use taxes Many Minnesota cities and counties have their own local sales and use taxes , which the Department of Revenue administers. • If you make taxable sales in a city or county with a local tax, you must register and collect that local tax as well as the state tax. • Local tax is reported on the same Minnesota sales and use tax return, on separate lines for each local tax area where you are registered.
223
Made with FlippingBook - Online Brochure Maker