Starting a business in North Dakota is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in North Dakota.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in North Dakota?
A business must register for a sales tax permit in North Dakota if:
How to Register for a Seller’s Permit in North Dakota?
You must apply for a Sales and Use Tax Permit 30 days before officially opening your business in the state of North Dakota. To submit your registration, you can use the online application process on the ND Tax.
1. Where to Apply for a Seller’s Permit in North Dakota?
The first step to register for a sales tax permit online is to go to North Dakota TaxPayer Access Point (ND TAP) and scroll down to the “Move to Digital” section. Click the plus (+) sign next to the “Apply for a Sales and Use Tax Permit” category to expand the window. You will then click the “Apply for a Sales and Use Tax Permit” button.
When you land on the “Apply for Sales or Withholding Account” page, click “Electronic Application” to proceed. You will then follow through the prompts that walk you through your registration process and provide the required information.
During your registration process, you must state the purpose of your application. If you’re registering as an out-of-state/remote seller with no physical presence, click on the drop-down list and select “Remote Seller.”
In the “Account Types” section, make sure you select “
Yes” when you are asked, “
Are you applying for a Sales and Use Tax Permit?”
In the same process, you will also be asked, “
Do you currently have an ND TAP (North Dakota TaxPayer Access Point) username?”If you select “Yes” then you must enter your username to continue the process.
If you don’t have an ND TAP account, you will be prompted to create one to proceed with your permit application. Once your online user profile is set up, you will fill up your “Taxpayer and Sales & Use Contact Information” as the final step before you can submit your application.
2. What Information Do You Need to Get a Seller’s Permit in North Dakota?
To successfully acquire a seller’s permit in North Dakota, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in North Dakota:
- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the State of North Dakota (Nexus Start Date), Estimated Annual Taxable Sales in North Dakota
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in North Dakota?
Registering for a Sales and Use Tax permit in North Dakota is free, and you won’t need to provide payment details to acquire your permit.
However, the state may require a bond to secure your seller’s permit. After 2 years of remitting accurate and timely returns, businesses can request an early bond refund by contacting North Dakota’s Office of State Tax Commissioner.
North Dakota sales tax permit does not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.br_spacer]
4. What are Other Ways to Register for a Seller’s Permit in North Dakota?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
What’s Next?
After your online submission, you will see a confirmation page confirming that your request for a sales tax permit has been submitted. If you created an ND TAP online user account during your application, you should also receive an authorization code via email which is needed to log in to your account for the first time.
You should receive your Sales Tax Permit letter in 10 to 14 business days at the mailing address provided during your registration process. This letter also includes your North Dakota Sales Tax Permit Number, your filing frequency, and instructions to set up your North Dakota account online.
Go to the North Dakota Taxpayer Access and click on “Sign Up For Access.” Follow the prompts for you to complete your online account.
Obtaining a Sales and Use Tax Permit requires you to collect sales tax for eligible sales in North Dakota. The document will also specify your filing frequency for sales tax returns and due dates.
Remember that if your business has a physical location in North Dakota, the Seller’s Permit must be visibly displayed at all times at the place for which the certificate is issued.
If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.
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