Nebraska sales tax filing update April 2019

What's changing in Nebraska?

Nebraska has passed a law requiring marketplaces to collect and remit sales tax on sales in Nebraska that are facilitated through the marketplace.

  • Amazon began this collection on April 1, 2019.
  • Walmart began this collection on May 1, 2019.
  • eBay began this collection on May 1, 2019
  • Etsy began this collection on June 1, 2019.
  • As of June 5, 2019, we have not yet received confirmation that any additional carts currently supported as marketplace facilitators in TaxJar's reporting plan to begin automatic collection in this state.
  • We will update this article with more details as our research team receives more specific confirmation and guidance from the state's DOR as well as the currently supported marketplace facilitators.

How does this affect me?

If you sell through a marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Nebraska for sales on and after April 1, 2019 on your TaxJar Dashboard and on your Nebraska Transactions page.

  • If you have never set up a filing frequency for Nebraska in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.) 
  • If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Nebraska listed as a state where you have an upcoming monthly return due in those emails.

I've never registered for a Nebraska license. Do I need to register for a sales tax license in Nebraska now?

If you are a retailer with a physical presence in Nebraska or you are a seller who has crossed the economic nexus threshold for Nebraska of sales exceeding $100,000 or 200 or more separate transactions in the current or last calendar year, then you will need to register for a Nebraska sales tax license.
  • If you've imported your sales across all platforms into your TaxJar account, you can determine if you have economic nexus in the state by running the Sales & Transactions Checker.
  • Inventory stored in the state meets the definition of engaging in business in the state, which creates nexus. (Reg-1-004).
  • If you do not meet any of the criteria that creates nexus in Nebraska, you won't need to register for a sales tax license in this state.

I have already registered for a license in Nebraska but and all of my sales are marketplace-only sales. Should I cancel my existing registration?

No. According to the state, sales through "Multivendor Marketplace Platforms" (marketplace facilitators) are included in the economic nexus evaluation.

Do I need to collect taxes on my Nebraska sales on other platforms?

Yes--if you have nexus in the state (physical or economic) and you make sales to customers in Nebraska on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Nebraska orders that are processed on the other platforms.

Do I still need to file returns in Nebraska?

Yes--once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
  • You can request a change of frequency with the state by filling out and submitting Form 22.

I still need to file returns in Nebraska. How do I do this without paying double tax on the sales that were collected and remitted by my marketplace?

When you file, your marketplace collected sales should be deducted from the gross sales (line 1) to arrive at the taxable sales total (line 2). 
  • If all of your sales are marketplace sales, once you deduct the marketplace sales, you will need to file a $0 return.
  • If you make sales on other platforms in addition to the marketplace, you'll need to make sure you remit the tax you collected for those sales when you file.
  • If you're enrolled in AutoFile for Nebraska, our system will handle the marketplace sales deduction process automatically.

How does this affect my TaxJar report for Nebraska?

Your TaxJar report for Nebraska has been updated to reflect the sales that had tax collected and remitted by the carts listed above.