North Dakota: Sales Tax Handbook
How to file your sales taxes in North Dakota
Once your business has a North Dakota sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the North Dakota government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In North Dakota
If the seller has an in-state location in the state of North Dakota, they are legally required to collect sales tax at the rate of the destination of the buyer, as North Dakota is a destination based sales tax state.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge the buyer's local tax rate, so long as the seller has sales nexus in North Dakota.
Sales Tax Collection Discounts In North Dakota
North Dakota allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the North Dakota sales tax regulations
The collection discount is 1.5% of the due tax for each individual business location, with a maximum of one hundred and ten dollars per month
Your North Dakota Sales Tax Filing Requirements
To file sales tax in North Dakota, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of North Dakota provides all taxpayers with two choices for filing their taxes. One option is to file online by using the North Dakota Taxpayer Access Point. This online system can also be utilized to remit the payment. The final option is filing manually through the mail, using the North Dakota Sales, Use, and Gross Receipts Tax form.
Tax payers should be aware of a late filing penalty. Each month or fraction of a month that the filing is late, is a 5% penalty, or five dollars, whichever is more. The maximum compounded filing penalty percentage is 25%. A late payment results in a 5% penalty, or five dollars, whichever is the larger ammount.
The state of North Dakota requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your North Dakota Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the last day of the month following quarter. For a list of this year's actual due dates, see our calendar of North Dakota sales tax filing due dates.
Where To File Your North Dakota Sales Tax Return:
Filing Your North Dakota Sales Tax Returns Online
North Dakota supports electronic filing of sales tax returns, which is often much faster than filing via mail.
North Dakota allows businesses to make sales tax payments electronically via the internet.
You can process your required sales tax filings and payments online using the official North Dakota Taxpayer Access Point (TAP) website, which can be found here . You should have received credentials to access your North Dakota Taxpayer Access Point (TAP) account when you applied for your North Dakota sales tax license.
Filing Your North Dakota Sales Tax Returns Offline
While it is highly recommended that you file online using the North Dakota Taxpayer Access Point (TAP) website, it is possible to file your required sales tax reportings offline using North Dakota filing frequency, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:North Dakota Sales Tax Filing Address: Office of State Tax Commissioner
PO Box 5623
Bismarck, ND 58506-5623
Taxpayers may also file North Dakota sales tax returns by completing and mailing Form ST: Sales, Use and Gross Receipts Tax Return to the following address:
Office of State Tax Commissioner
PO Box 5623
Bismarck, ND 58506-5623
Please note that if you file your North Dakota sales taxes by mail, it may take significantly longer to process your returns and payments.
Simplify North Dakota sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Back to North Dakota Sales Tax Handbook Top