Idaho sales tax filing update May 2019

What's changing in Idaho?

Idaho passed a law requiring marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective June 1, 2019.

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 Idaho for sales on and after June 1, 2019 on your TaxJar Dashboard and on your Idaho Transactions page.

  • If you have never set up a filing frequency for Idaho 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 Idaho listed as a state where you have an upcoming monthly return due in those emails.

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

Yes--if you are a retailer with a physical presence in Idaho, then you are required to register for an Idaho sales tax permit.

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

No. All sellers with nexus in the state are considered to be Idaho retailers by the state and your license would need to remain active.

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

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

Do I still need to file returns in Idaho?

Yes--once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
  • If you've previously registered, the state expects you to remain registered and continue to file returns.
  • The state has also noted here that sellers should "have your marketplace facilitator provide written verification of the sales tax they're reporting."
  • You may also contact the State Tax Commission from within your Idaho TAP account to request a reduced filing frequency.

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

When you file, you'll need to report your marketplace sales in "Line #2 Less nontaxable sales."
  • 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 Idaho, our system will handle the marketplace sales deduction process automatically.

How does this affect my TaxJar report for Idaho?

Your Idaho sales tax report are updated to specifically reflect sales that had tax collected and remitted by marketplaces that are supported as marketplace facilitators in TaxJar reports.