Kansas: Sales Tax Handbook
What constitutes sales tax nexus in Kansas?
One of the more complicated aspects of Kansas sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Kansas, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Kansas, the vendor must register for a Kansas sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in Kansas.
Sales Tax Nexus in Kansas
The state of Kansas necessitates you to pay sales tax if you engage in business in the state. If it is determined that you engage in business in the state of Kansas, you must register with Kansas Department of Revenue. You must then begin charging and paying sales tax. Your tax nexus status can be determined using the following guidelines.
If you fall within any of these parameters, you have a tax requirement to the state of Kansas.
1. If you have an office or place of business in Kansas, you have sales tax nexus.
2. An employee present in the state of Kansas brings with him sales tax nexus in the state.
3. Storing goods in a warehouse located in Kansas will bring sales tax nexus in Kansas to your business.
4. If you are a retailer at a craft show or festival within Kansas state lines, you have tax obligations to the state.
5. If you are a resident of a different state, but you perform labor or service in the state, you have to pay taxes.
For additional details on sales tax nexus law in Kansas, see the nexus information page from the Department of Revenue at http://www.ksrevenue.org/pdf/pub1510.pdf#xml=http://search.ksrevenue.org/texis/search/pdfhi.txt?query=sales+tax+nexus&pr=KSRevenue&prox=page&rorder=500&rprox=500&rdfreq=500&rwfreq=500&rlead=500&rdepth=0&sufs=0&order=r&cq=&id=555af0417
Taxation of Internet-Based Sales in Kansas
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Depending on the situation, Kansas may or may not charge sales tax on Internet-based transactions. In the state of Kansas, the "click-through" nexus applies. A rebuttable presumption is that a retailer is "doing business in this state" if the retailer enters into an agreement a Kansas resident or residents, where the resident (for any type of payment) either directly or indirectly refers any potential buyers in any way shape or form, and if the cumulative gross receipts from all of the sales by the seller to buyers who are residents of Kansas, who are directed to the seller by any resident with this sort of an agreement, when the retailer totals more than ten thousand dollars during the previous year.
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Kansas, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in Kansas?
The folks at the sales tax compliance company Avalara are an approved Kansas sales tax partner, and you can use their free Kansas nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Kansas sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
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