Nebraska: Sales Tax Handbook
What purchases are taxable in Nebraska?
The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the Nebraska sales tax.
Contents1.) Taxability of Goods and Services
- General Nebraska taxability guidelines
- Are services subject to sales tax?
- Is shipping & handling subject to sales tax?
- Are drop shipped items taxable?
Section 1: Taxability of Goods and Services
What transactions are generally subject to sales tax in Nebraska?
In the state of Nebraska, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. An example of items that exempt from Nebraska sales tax are certain kinds of prescription medications and some types of medical devices.
This means that an individual in the state of Nebraska who sells computer games and video games would be required to charge sales tax, but an individual who owns a store which sells medical devices is required to charge sales tax on all of its products.
Are services subject to sales tax in Nebraska?
In the state of Nebraska, services are not usually seen as beeing taxable. While most services are exempt from tax, there are a few exceptions. For example, a service who's work includes creating or manufacturing a product, it is very likely considered to be taxable, and thus you would most likely have to pay sales tax on the service.
You can find a table describing the taxability of common types of services later on this page.Top
Are shipping & handling subject to sales tax in Nebraska?
In the state of Nebraska, the laws regarding tax on shipping and handling costs are extremely simple simple. The vast majority of shipping charges are considered to be taxable. This still applies, no matter how it is stated on the invoice. Tax exemptions only apply when a tax-exemot item is being shipped, or if the delivery charge to the applicable company was paid seperately. Even if it is stated separately, the charges are still taxable. If both exempt and non-taxable items are being shipped together, the percentage of the shipping charge that relates to the taxable items must be taxed.Top
Are drop shipments subject to sales tax in Nebraska?
"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Nebraska, drop shipments are generally subject to state sales taxes.
Section 2: Taxability of Various Items in Nebraska
This table shows the taxability of various goods and services in Nebraska. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.
|Products on Amazon.com||TAXABLE *|
|Food and Meals|
|Leases and Rentals|
|Motor Vehicles||TAXABLE *|
|Tangible Media Property||TAXABLE|
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT *|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT *|
|Motor Vehicles||TAXABLE *|
|Optional Maintenance Contracts|
|General Optional Maintenance Contracts||TAXABLE *|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||EXEMPT *|
|Pollution Control Equipment|
|General Pollution Control Equipment||TAXABLE *|
|Software and Digital Products|
|Canned Software - Delivered on Tangible Media||TAXABLE|
|Canned Software - Downloaded||TAXABLE|
|Custom Software - Delivered on Tangible Media||TAXABLE|
|Custom Software - Downloaded||TAXABLE|
|Customization of Canned Software||TAXABLE *|
|Vending Machine Sales|
* See notes in category taxability page for details
Back to Nebraska Sales Tax Handbook Top