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Last Updated: 9/7/2018

Registration Requirements for Sales and Use Taxes

You must register and collect sales tax in Minnesota if you have a taxable presence (nexus) in Minnesota, even if you are an out-of-state retailer or marketplace provider.

You have presence in Minnesota if your business does any of the following:

  • Maintains a physical location in Minnesota (office, warehouse, or distribution, sales, or sample room).
  • Has no physical location in Minnesota but sells to customers in the state  by internet, mail order, or telephone  and over a 12-month period ships either:

    • 100 or more retail sales into Minnesota.

    • 10 or more retail sales that total more than $100,000 into Minnesota..
  • Has an employee, representative, agent, or independent contractor working on your behalf in Minnesota.
  • Provides taxable services in Minnesota.
  • Facilitates the sale of taxable goods or services on behalf of a Minnesota business.
  • Delivers items into Minnesota in your own vehicles.
  • Owns property in Minnesota.
  • Keeps inventory in a fulfillment center in Minnesota.
  • Is an affiliate of a Minnesota retailer that promotes or provides other services to you, and your business and the retailer are related parties.
  • Agrees to pay a commission or similar consideration to a Minnesota resident who directly or indirectly refers potential buyers to your business through website links or otherwise.

Local taxes

Some cities and counties have local sales and use taxes. If you make sales into or are located in an area with a local tax, you may owe local sales or use tax. For more information, see Fact Sheet 164, Local Sales and Use Taxes.

To determine the sales tax rate, use the location where the customer receives the product, typically your business or a delivery address. You can use our Sales Tax Rate Calculator to help you determine the sales tax rate.

Note: The rate calculator does not include special local taxes.

For more information, see:

 

Use tax

If you do not make taxable sales, but make purchases subject to use tax, you must register to remit use tax.