Who Needs to Register?
You must register and collect sales tax in Minnesota if you have a taxable presence or 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)
- Sells products to customers in Minnesota, using the internet, mail order, or telephone, without having a physical presence in that state and does not meet the small seller exemption
- Has 200 or more retail sales shipped to Minnesota over a period of 12 consecutive months
- Has retail sales that total more than $100,000 shipped into Minnesota over a period of 12 consecutive months
- Has an employee, representative, agent, or independent contractor that does work on behalf of the retailer in Minnesota
- Facilitates the sale of taxable goods or services to customers in Minnesota on behalf of a business
- Delivers items into Minnesota in your own vehicles
- Provides taxable services in Minnesota
- 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
- Enters into an agreement with a Minnesota resident for a commission or similar consideration and directly or indirectly refers potential buyers to the seller through website links or otherwise
Small Seller Exception
Starting October 1, 2019, Minnesota’s Small Seller Exception will require remote sellers to collect and remit sales tax if their total sales over the prior 12-month period total either:
- 200 or more retail sales shipped to Minnesota
- More than $100,000 in retail sales shipped to Minnesota
A retail sale is one sales transaction. For example, one sale into Minnesota may contain 10 items for one customer. That transaction counts as one retail sale.
Note: When calculating this exception, do not include sales where the purchaser is buying for resale. The purchaser must give you a completed, Form ST3, Certificate of Exemption claiming a resale exemption.
What if I do not make taxable sales?
If you sell only nontaxable items, you do not need to register for a sales tax account. However, if you make purchases subject to tax, you may need to register to pay use tax. See Use Tax for Businesses.