Nevada: Sales Tax Handbook
What purchases are taxable in Nevada?
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 Nevada sales tax.
Contents1.) Taxability of Goods and Services
- General Nevada 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 Nevada?
In the state of Nevada, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Some examples of items that exempt from Nevada sales tax are certain kinds of machinery, groceries, prescription medication, and medical devices.
This means that an individual in the state of Nevada 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 Nevada?
In the state of Nevada, services are not usually seen as being taxable. While most services are exempt from tax, there are a few exceptions. For example, a service is necessary to complete the purchase of a tangible, physical personal property, 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 Nevada?
In the state of Nevada, the laws regarding tax on shipping and handling costs are relatively simple. Essentially, if the shipping charges are listed separately stated on an invoice, it is not considered to be taxable(and if the title of the purchased item passes to the buyer before the item is shipped(as per a written agreement between buyer and seller), and if the charges are not stated separately on the invoice, taxes should be paid on the shipping charge. If both taxable 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 Nevada?
"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 Nevada, drop shipments are generally subject to state sales taxes.
Section 2: Taxability of Various Items in Nevada
This table shows the taxability of various goods and services in Nevada. 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||TAXABLE|
|Medical Goods and Services|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT|
|Motor Vehicles||TAXABLE *|
|Optional Maintenance Contracts|
|General Optional Maintenance Contracts||EXEMPT *|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||TAXABLE|
|Pollution Control Equipment|
|General Pollution Control Equipment||EXEMPT|
|Software and Digital Products|
|Canned Software - Delivered on Tangible Media||TAXABLE|
|Canned Software - Downloaded||EXEMPT|
|Custom Software - Delivered on Tangible Media||EXEMPT *|
|Custom Software - Downloaded||EXEMPT|
|Customization of Canned Software||TAXABLE *|
|Vending Machine Sales|
* See notes in category taxability page for details
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