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Can I collect sales tax from customers in different states without violating tax laws in Idaho? What are the requirements?

Sales Tax Collection Requirements for Businesses in Idaho

If you are a retailer engaged in business in Idaho and making sales of tangible personal property for the storage, use, or other consumption in Idaho, you are required to collect sales tax from the purchaser and give them a receipt in the manner and form prescribed by the state tax commission [1.4].

If you are a marketplace facilitator, you are required to register with the state tax commission and collect, report, and pay state sales and use taxes on any retail sale facilitated by the marketplace facilitator. A marketplace facilitator shall not collect, report, or pay any local sales tax or any other tax or assessment that is not imposed by this chapter [1.2].

If you are an out-of-state retailer, you must comply with Idaho’s sales tax laws if you have a physical presence in Idaho or if you meet certain economic nexus thresholds. Specifically, any retailer without a physical presence in Idaho that has, in the previous calendar year or the current calendar year, cumulative gross receipts from sales delivered into Idaho in excess of one hundred thousand dollars ($100,000) is required to collect and remit sales tax [1.5].

It is important to note that sales tax laws vary by state, and you may need to comply with the sales tax laws of the state where your customers are located. You should consult with a tax professional or the state tax agency in each state where you have customers to determine your sales tax obligations.

Conclusion

In summary, if you are a retailer engaged in business in Idaho, you are required to collect sales tax from purchasers in Idaho. If you are a marketplace facilitator, you are required to register with the state tax commission and collect, report, and pay state sales and use taxes on any retail sale facilitated by the marketplace facilitator. If you are an out-of-state retailer, you must comply with Idaho’s sales tax laws if you have a physical presence in Idaho or if you meet certain economic nexus thresholds. You should consult with a tax professional or the state tax agency in each state where you have customers to determine your sales tax obligations [1.2][1.4][1.5].

Source(s):
Jurisdiction

Idaho