How to Get an Idaho Sales Tax Permit?
Businesses that are subject to sales tax in Idaho need a sales tax permit, which is obtained by registering online. The process is free, and the resulting permit is valid indefinitely. The business will need to display the permit where it is visible to customers.
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To qualify for an Idaho Sales Tax Permit, the business must have nexus in Idaho. Nexus can be physical or economic. Physical nexus involves having enough tangible presence in a state, such as an office, warehouse, or store. Economic nexus is based on passing a state’s threshold for total revenue or number of transactions. Obtaining an Idaho Sales Tax Permit is essential for businesses that sell taxable goods or services in the state. Here’s a step-by-step guide to help you through the process:
Step 1: Gather Required Information
Before starting the application, make sure you have the following information:
– Legal business name and DBA (Doing Business As) name, if applicable.
– Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if a sole proprietorship.
– Business address and contact information.
– Detailed description of the business activities.
– Date you plan to start selling taxable goods or services in Idaho.
Banking information for electronic funds transfer (optional but recommended).
Step 2: Register Online
– Visit the Idaho State Tax Commission Website: Go to the Idaho State Tax Commission website.
– Create an Account: If you don’t already have an account, you’ll need to create one by clicking on – “Apply for a Permit” under the “Businesses” section.
– Complete the Application: Fill out the application form with the required information. Make sure to provide accurate and complete details to avoid delays in processing.
Step 3: Submit the Application
– Review and Submit: Carefully review all the information you have provided to ensure accuracy. Submit the application once you are confident everything is correct.
– Confirmation: After submission, you will receive a confirmation email with a reference number. Keep this for your records.
Step 4: Receive Your Sales Tax Permit
– Processing Time: The Idaho State Tax Commission typically processes applications within 10 business days.
– Permit Issuance: Once approved, you will receive your Idaho Sales Tax Permit, allowing you to legally collect sales tax on taxable sales.
Step 5: Compliance and Reporting
– Collect Sales Tax: Begin collecting sales tax from customers at the point of sale.
– File Sales Tax Returns: File regular sales tax returns through the Idaho State Tax Commission’s online portal. The frequency (monthly, quarterly, or annually) depends on your sales volume.
– Remit Collected Taxes: Ensure timely remittance of collected sales taxes to the Idaho State Tax Commission.
