North Dakota raises a substantial portion of its state revenue through the imposition of a state sales tax (and use tax). Businesses selling products and services in the state need to file for a North Dakota sales tax permit number. This permit also applies to use tax, which is for purchases made out of state by the business for use within the state. The businesses then use their sales tax ID number to remit North Dakota sales taxes to the state tax authorities.
You should first register any new North Dakota businesses with the Secretary of State if the business has a state-level registration requirement. Like most states, entities required to file with the Secretary at the state level include corporations, limited liability companies, limited partnerships, limited liability partnerships and limited liability limited partnerships. You will choose a name when you register. Use that same North Dakota business name when you complete your North Dakota sales tax registration or other business tax registrations.
Before applying for a North Dakota sales and use tax permit, you may also need a federally issued employer identification number. This number is required of businesses with employees and other specified businesses, such as sellers of tobacco and nonprofit organizations. To determine if you need this tax ID number (EIN number), you can do some research over at the IRS.gov website by searching for “EIN registration” with the web search engine on that site.
Register to get a North Dakota sales tax permit. This state uses the North Dakota Office of State Tax Commissioner’s “Application to Register for Income Tax Withholding and Sales and Use Tax Permit” form. Fill out and print this form at nd.gov/tax/salesanduse/forms/withholdsalesapplication-enabled.pdf.
When you complete and mail in this sales tax application, you will get a permit that covers income tax withholding, sales tax and use tax. You will now have a North Dakota sales tax ID number to use for reporting and remitting North Dakota sales taxes to the State Tax Commissioner’s office.
Determine your legal requirements for collecting sales tax from your customers. As a general rule, the North Dakota sales tax rate is 5 percent on retail sales of personal property and services. However, there are some exceptions, and you or your customers may be exempt from certain purchases, such as purchases for resale. Find out about current North Dakota sales tax rates, exemptions and other basic information with the sales and use tax information booklet at nd.gov/tax/salesanduse/pubs/guide/gl-21826.pdf.
Collect the tax from your North Dakota customers and pay it to the Office of the Tax Commissioner. Go to the North Dakota Sales Tax Webfile page and open an account to set up payment online in lieu of using paper sales tax forms and returns. You will remit the sales tax by wiring funds from your bank account. Make sure you keep abreast of the due dates and send in the payments in time to avoid possible penalties from the North Dakota business tax authorities.
North Dakota Sales Tax Permit Application