How to Register for a Sales Tax Permit in Nebraska
Most businesses starting in Nebraska selling a product or offering certain services will need to register for a sales tax permit. This is commonly referred to as a seller’s permit, sales tax license, sales tax number, or sales tax registration.
The sales tax permit is obtained through the Nebraska Department of Revenue to apply for a Nebraska Tax ID Number.
Check out the rest of this guide to determine who needs a sales tax permit, what products and services are taxable, how to register for a permit, and reporting requirements.
Also See: Guide to Starting a Business in Nebraska
Who needs a sales tax permit in Nebraska?
A business must register for a sales tax permit in Nebraska when:
- A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Selling, leasing, or renting tangible personal property in Nebraska (includes occasionally selling items at craft shows, fairs, seminars, conventions, etc.)
- Providing taxable services in the state
- Employees (including sales representatives or agents) are working in Nebraska
- An online business located in Nebraska is selling taxable products to Nebraska residents
- A remote seller meets one of the following scenarios:
- Making total annual sales of tangible personal property to Nebraska residents of $100,000 or more; or
- Shipping 200 or more separate transactions to Nebraska residents annually.
What products and services are taxable in Nebraska?
Physical products
There are a few exceptions, but almost all physical products are taxable when sold at retail in the state of Nebraska. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
Prescriptions, groceries, and certain manufacturing equipment are tax-exempt. See the full list of sales tax exemptions in Nebraska.
Digital Products
Digital products are taxable in Nebraska.
Services
Most services aren’t taxable in Nebraska, however, there are a few exceptions, some of which include:
- Pest control services
- Building cleaning and maintenance
- Towing
- Motor vehicle painting
- Car detailing
- Security services
- Animal specialty services like dog grooming
- Repair or maintenance services
See the full list of taxable services in Nebraska.
How to register for a sales tax permit in Nebraska
A sales tax permit can be obtained by registering for a Nebraska ID Number online or by mailing in the Nebraska Tax Application (Form 20).
Information needed to register a new business includes:
- Employer Identification Number (EIN) from the IRS, or owner’s Social Security Number if a sole proprietorship with no employees
- Doing Business As and legal name of the business
- The physical and mailing address of the business
- Names, addresses, and social security numbers of owners/officers/members
- Type of business entity: Sole Proprietorship, Partnership, Corporation, Limited Liability Company (LLC)
- Accounting basis (cash or accrual)
- Accounting period (calendar or fiscal)
- Description of what products or services are being sold
- Projected sales tax liability
- Expected date of the first sale
Sales tax reporting
How is sales tax collected?
When a business sells a taxable product or service, the business charges the appropriate sales tax rate to the customer. This tax is collected by the business which is then sent to the Nebraska Department of Revenue.
How much is sales tax in Nebraska?
The sales tax rate that is charged varies depending on the address of the business if the purchase is made in the store. When shipping in-state, the sales tax is based on the address of the purchaser.
In addition to the statewide tax, there are additional sales taxes that may be added by cities and municipalities. To find sales tax rates, see the sales tax rate finder from the Nebraska Department of Revenue.
When are Nebraska sales tax returns due?
The Department of Revenue will determine a filing frequency based on the expected sales volume, which will be monthly, quarterly, or annually. Generally, a business collecting over $3,000 each month will file monthly.
Filings are due on the 20th day of the month following the reporting period, unless the 20th falls on a weekend or federal holiday, which would move to the next business day.
Even if the business had no sales during the reporting period, a filing is still required indicating no sales.
How much does a sales tax permit cost in Nebraska?
There is no cost for a sales tax permit in Nebraska.
How long does it take to get a Nebraska sales tax permit?
Expect up to 2 weeks to receive a Nebraska sales tax permit.
Do you have to renew a Nebraska sales tax permit?
The sales tax permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Revenue.
Is a business license the same thing as a sales tax license?
In addition to registering for a sales tax permit, there may be other business licenses needed before starting a business in Nebraska.
How do I get a wholesale license in Nebraska?
A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge sales tax to the end-user of the item.
Wholesalers and distributors will require a sales tax number and fill out the Nebraska Resale Certificate (also referred to as a wholesale license, seller’s permit, or sales tax exemption certificate) to document the items being purchased are for resale.
If you have questions about the sales tax permit, the Nebraska Department of Revenue has a guide to sales and use taxes in Nebraska or can be contacted by calling 800-742-7474 or 402-471-5729.
