North Dakota Sales Tax Filing Update July 2019

What's changing in North Dakota? 

North Dakota has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective no later than October 1, 2019.

  • Walmart has confirmed that they plan to begin this collection on July 1, 2019.
  • As of July 22, 2019, we have not yet received confirmation that any additional carts currently supported as Marketplace Facilitators in TaxJar's Reporting plan to begin this automatic collection.
  • 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. 
  • You can view the state's guidance document here

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 North Dakota for sales on and after July 1, 2019 on your TaxJar Dashboard and on your North Dakota Transactions page.

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

I have already registered for a license in North Dakota 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 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 my sales are Marketplace sales, do I need to file a $0 return?

Yes. If your only sales are Marketplace sales, the state still expects you to remain registered and file a return. 

Do I need to collect taxes on my North Dakota sales through 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.

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.