Businesses and Sales/Use Taxes
Sales tax applies to the sale, rental, or lease of tangible personal property and some services. Use tax is a tax on goods that you put to use or store in Idaho, if you didn't pay sales tax when you bought the goods and no exemption applies.
Start on our Sales and Use Tax page for an overview of these taxes, and links to forms and publications.
Idaho law requires retailers who are doing business in Idaho to get a seller's permit and collect sales tax on the sale of goods they ship or deliver to customers in Idaho. All retailers doing business in Idaho must file regular Idaho sales tax returns to pay the tax they collect.
You're considered to be doing business in Idaho if you have a physical presence in the state (whether permanent or temporary). This includes:
- Having an office, warehouse, sales or sample room, or storage place
- Maintaining a stock of goods
- Renting or leasing property (other than real property) to a customer who uses the property in Idaho
- Servicing tangible personal property in Idaho
- Having a salesman, agent, or representative who comes to Idaho to sell, deliver, install, or take orders. (It doesn't matter whether the salesman, agent, or representative is your employee, or whether he lives in Idaho or another state.)
Presence can also be established by the relationship of one business to another that is doing business in Idaho. If a parent, subsidiary or other commonly-owned company is in business in Idaho, then all other members of the same group that are in a similar line of business are subject to Idaho's sales tax laws.
Businesses that make retail sales pay use tax with their sales tax return. If you make retail sales, you should apply for a seller's permit so you can pay the sales tax you collect from your customers. The reporting forms for a sales permit can also be used to pay your use tax.
Businesses that don't make retail sales either pay use tax with their annual Idaho income tax return or a use tax return. If you own a business that doesn't make taxable sales, but still owes use tax, you can print Form 850-U and mail it with your payment to the Idaho State Tax Commission.
You can also report and pay use tax on your annual income tax return. Check the tax return instructions to find the appropriate line. If you have frequent or large purchases subject to tax, you can still use Form 850-U periodically rather than wait until income tax filing time.
Business owners who are not retailers, and who owe use tax month to month, should contact us to get a use tax filing number.
The IBR-1 is a combined application for the Tax Commission, Idaho Department of Labor, and the Industrial Commission. With this application you can get your seller's permit; use tax, travel and convention, Greater Boise Auditorium District, Idaho income tax withholding, and state unemployment accounts; and you can report your workers' compensation information to the Industrial Commission.
You can complete and submit the IBR online. You should receive your account number in about 10 days.
The sales tax return is Form 850. If you file monthly, it's due the 20th of the month following the tax period (e.g. October's return is due November 20). If you file quarterly, it's due the 20th of the month following the end of a quarter. For example, the first quarter return is due April 20. You can e-file your sales tax return online.
Personalized copies of Form 850 are mailed to account owners and aren't available on our website. If you've misplaced your paper returns, you can request reprints by calling the Tax Commission.
Here's a chart of the due dates for sales and withholding.
A buyer who resells tangible property bought from sellers in other states may be able to use The Uniform Sales and Use Tax Exemption Certificate – Multijurisdiction to make tax exempt purchases for resale. States vary in their policies for using this certificate. Questions regarding your specific eligibility to use this certificate should be addressed to the revenue department of the relevant state.
If you're an event promoter, check our information on promoter-sponsored events to find out about your specific responsibilities.
If you have an Idaho seller's permit and you're shipping products to customers in Idaho, you must collect Idaho sales tax on sales made through the Internet.
If you have an out-of-state business making sales through the Internet to customers in Idaho, and your activity indicates that you're doing business in Idaho, you must have an Idaho seller's permit and collect the Idaho sales tax.
If you have an out-of-state business making sales through the Internet to customers in Idaho, but aren't "doing business" in Idaho, you don't need to collect Idaho sales tax; your customers will be responsible for paying the required Idaho use tax directly to the state of Idaho. (However, if you're a wine direct shipper, special rules apply.)
Fees charged for the right to use tangible personal property or other facilities for recreation in Idaho are subject to sales tax. Examples are lift tickets (including season ski passes), greens fees, fees for bowling, health club membership fees, and admissions to amusement parks, water parks, theaters, and movies.