North Dakota Sales Tax Filing Update July 2019: Marketplace Facilitator Laws
North Dakota passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace.
• Walmart began this collection on July 1, 2019.
• Amazon, eBay, and Etsy began this collection on October 1, 2019.
In this article, we summarize North Dakota's state guidance on the following questions:
- Do I need to register for a sales tax license in North Dakota?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on North Dakota sales on non-marketplace platforms?
- Do I still need to file returns in North Dakota?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
I've never registered for a North Dakota license. Do I need to register for a sales tax license in North Dakota now?
If you have never registered for a sales tax license in North Dakota and your only sales in North Dakota are through a Marketplace and your Marketplace Facilitator collects and remits sales tax on your behalf in this state, you will NOT need to register for a North Dakota sales tax license.
If you are a retailer with a physical presence in North Dakota or you are a remote seller who has crossed the economic nexus threshold for North Dakota ($100,000/year in gross revenue in the previous or current calendar year), then you will need to register for a North Dakota 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.
- If you do not meet any of the criteria that creates nexus in North Dakota (physical, economic or otherwise), you won't need to register for a sales tax license in this state.
I have already registered for a license in North Dakota but and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
No. If you are a marketplace seller who has already registered due to physical presence (such as inventory stored in your Marketplace's warehouse) or you have voluntarily registered, you should remain registered, according to the DOR.
Do I need to collect taxes on my North Dakota sales on other platforms?
Yes--if you have nexus in the state (physical or economic) and you make sales to customers in North Dakota on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the North Dakota orders that are processed on the other platforms.
Do I still need to file returns in North Dakota?
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. If all your sales are Marketplace collected, you would still need to file a return stating reporting no sales activity.
I still need to file returns in North Dakota. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
When filing your North Dakota sales tax return, include marketplace sales in total sales. Then, enter marketplace sales in nontaxable sales.