Minnesota has a Small Seller Exception that does not require remote sellers of hearing aids and related equipment or prescription eyewear to file and pay Provider Tax unless they meet one or both of these thresholds during a calendar year:
- 200 or more sales, deliveries, or distributions of the above items into Minnesota
- More than $100,000 in gross revenue from sales, deliveries, or distributions of the above items into Minnesota
Example 1: You are a remote seller who sells hearing aids to consumers in Minnesota. During the calendar year, you receive $90,000 in gross revenue for hearing aids sold to consumers in Minnesota, and you make 100 sales to consumers in the state.
You qualify for the Small Seller Exception for the calendar year and are not subject to Provider Tax because you did not meet or exceed any Small Seller Exception thresholds.
Example 2: You are a remote seller who sells prescription eyewear to consumers in Minnesota. During the calendar year, you receive $150,000 in gross revenue for prescription eyewear sold to consumers in Minnesota, and you make 180 sales to consumers in the state.
You do not qualify for the Small Seller Exception for the calendar year and are subject to Provider Tax because you received more than $100,000 in gross revenue.
When you Meet a Threshold
If you meet either threshold during a year, you do not qualify for the Small Seller Exception for that year. You must file a return and pay tax on all your taxable sales into Minnesota during that year. You must continue to file a return and pay tax each year unless you either:
- Fall below both thresholds for a year and you notify us by the March 15 filing due date for that year
- No longer make sales into Minnesota
