Online sales to N.D. will be taxed starting Oct. 1

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Starting October 1st, remote sellers doing business in North Dakota will have to collect North Dakota’s sales and use tax on all sales.

That’s the word today from State Tax Commissioner Ryan Rauschenberger.

The tax department has finalized the rules and procedures for implementing the tax collection in the wake of last month’s U.S. Supreme Court ruling making remote sellers like online retailers liable for collecting sales taxes in the states where they do not have a physical presence

“The 2017 North Dakota Legislature passed a law that expanded North Dakota sales tax collection requirements to include remote sellers,” Rauschenberger says. “Remote sellers will be required to begin collecting North Dakota sales tax on October 1, 2018, allowing them time to register and update their systems and software. They may voluntarily begin collecting any time before the October 1 date.”

There is a “small seller” exemption in place. If a seller’s remote sales in North Dakota are less than $100,000 or represent less than 200 transactions a year, they are not required to collect the state sales tax.

“It is our mission to treat all of our taxpayers fairly, regardless of where they are located,” Rauschenberger stated. “We understand the impact that the Supreme Court’s decision will likely have on businesses and we are working to ensure a smooth transition for taxpayers who have this new collection responsibility.”

The state tax department says there are two ways for remote sellers to register in North Dakota:

  • If a remote seller does business in multiple states, the business can register through the Streamlined Sales Tax Registration System. North Dakota is one of 24 states participating in the program, which creates a single, electronic registration system for all member states.
  • If a remote seller does business just in North Dakota, the business can register through North Dakota’s Taxpayer Access Point (TAP).

Additional information for remote sellers is available here.

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