Nevada: Sales Tax Handbook
What constitutes sales tax nexus in Nevada?
One of the more complicated aspects of Nevada sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Nevada, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Nevada, the vendor must register for a Nevada 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 Nevada.
Sales Tax Nexus in Nevada
According to the Nevada law, retailers who have tax nexus can be defined in several different ways.
If your business has an office or any other type of place of business in Nevada, an employee, sales representative, agent, contractor, or any other representative present within the state's boundaries, the delivery of goods in vehicles within the state, the ownership of any real or personal property, or the storage of goods stored in a warehouse in Nevada, you have sales tax nexus in the state.
For additional details on sales tax nexus law in Nevada, see the nexus information page from the Department of Taxation at http://tax.nv.gov/FAQs/Sales_Tax_Information___FAQ_s/
Taxation of Internet-Based Sales in Nevada
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, Nevada may or may not charge sales tax on Internet-based transactions. The state of Nevada does not provide any sort of statutory or regulatory guidance when it comes to sales nexus. However, in the case Quill Corp. v. North Dakota, the U.S. Supreme Court declared that due to the Commerce Clause, a seller must have a physical presence in the state of Nevada for the state to legally require the seller to collect sales tax.
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Nevada, 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 Nevada?
The folks at the sales tax compliance company Avalara are an approved Nevada sales tax partner, and you can use their free Nevada nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Nevada sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
Back to Nevada Sales Tax Handbook Top