If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In North Dakota, the first step is visiting the state website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in North Dakota?
Retail sales of tangible goods are subject to sales tax in North Dakota. Transportation services, repair services, hospital and nursing home services, and furnishing services are also taxable. Groceries and prescription drugs are generally exempt from sales tax.
North Dakota Sales Tax Rate
The sales tax rate in North Dakota is 5%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for North Dakota Sales Tax
In North Dakota, acquire a seller’s permit by following the state’s detailed instructions for registration:
- Go to the North Dakota business portal.
- Fill out the sales and use tax application.
- There is no fee to obtain a sales tax license in North Dakota.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In North Dakota, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.