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Last Updated: 6/9/2017

Registration Requirements for Sales and Use Taxes

Do I need to register?

Yes, if you sell, lease or rent tangible personal property at retail or provide taxable services in Minnesota. This includes sellers outside Minnesota who:

  • have an office; distribution, sales or sample room location; warehouse or other place of business in Minnesota, either directly or by a subsidiary;

  • have a representative, agent, salesperson, canvasser or solicitor in Minnesota, on either a permanent or temporary basis, who operates under the authority of the retailer or its subsidiary for any purpose, such as repairing, selling, delivering, installing, soliciting orders for the retailer’s goods or services, or leasing tangible items in Minnesota;

  • deliver items into Minnesota in their own vehicles; or

  • provide taxable services in Minnesota.

See Revenue Notice #00-10, Sales and Use Tax – Nexus Standards, for criteria on determining when an out-of-state retailer is required to register, collect and remit Minnesota sales or use tax on sales made into Minnesota. If you sell only nontaxable items, you do not need to register.

 

Local taxes

If you make retail sales in any city or county with a local sales tax, you must also register to collect that local tax.

 

Use tax

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

Affiliates of Minnesota businesses are required to collect and remit Minnesota sales tax on sales made into Minnesota.

An entity is an affiliate of a Minnesota business if the related entity promotes the affiliate’s business or provides services to the out-of-state entity and the retailer and entity are related parties. A retailer and entity are related parties if at least one of the following is true:

  • One of the parties owns directly or indirectly at least 50 percent of the other party’s outstanding stock;

  • One of the parties is a partnership, estate or trust that owns directly or indirectly at least 50 percent of the capital, stock or value of the other party; or

  • An individual stockholder or the stockholder’s family owns directly or indirectly at least 50 percent of the value of outstanding stock of both entities.

For example, if two entities are related and the in-state entity advertises, promotes or facilitates the establishment or maintenance of a market in Minnesota for an out-of-state seller, the in-state entity creates nexus for the out-of-state seller.

In addition, if the in-state entity provides services to the out-of-state seller (such as accepting returns from the seller’s customers, resolving complaints from the seller’s customers, etc.), the in-state entity also creates nexus for the out-of-state seller.