Nevada Sales Tax on Services, Installation, etc Nevada: Sales Tax Handbook

Nevada:

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.

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.

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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.

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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.

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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.

Category Exemption Status
Amazon Purchases
Products on Amazon.com TAXABLE
Clothing
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food EXEMPT
Leases and Rentals
Motor Vehicles TAXABLE *
Tangible Media Property TAXABLE *
Manufacturing and Machinery
Machinery TAXABLE
Raw Materials EXEMPT
Utilities & Fuel TAXABLE
Medical Goods and Services
Medical Devices EXEMPT
Medical Services EXEMPT
Medicines TAXABLE *
Newspapers and Magazines
Newspapers EXEMPT *
Periodicals TAXABLE
Occasional Sales
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
Services
Janitorial Services EXEMPT
Transportation Services 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 *
Digital Products EXEMPT
Trade-Ins
General Trade-Ins EXEMPT
Vending Machine Sales
Food TAXABLE *
Merchandise TAXABLE

* See notes in category taxability page for details



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** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/nevada/sales-tax-taxability