Search Category: Sales Tax

Lodging: Recordkeeping

You must keep records of all the purchases and sales that your business makes. Your records must show that you properly collected, reported, and paid or forwarded taxes to Idaho.

Records you must keep

  • Normal books of account (books of account can include information stored on computers)
  • Documents that support entries in the books of account
  • Copies of Sales Tax Resale or Exemption certificates
  • Lease agreement (and related documentation) if a room is continuously occupied for more than 30 days

Keep all records for transactions involving sales or use tax, including these items:

  • Sales (and credit granted)
  • Purchases
  • Tax returns
  • Tax payments

What your records must show

  • Gross receipts from sales and services made in Idaho, even sales that you or your customer think are exempt. If you deliver the product or service somewhere other than your place of business, you must also keep records that prove where delivery took place or the service was performed.
  • The total purchase price of anything you bought for sale, rental, lease or your own use.
  • The amount of sales tax you collected from your customer or you paid to a vendor.
  • The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
  • All deductions you claim when filing returns.

We’ll bill you for the tax due if you don’t keep records to explain why you didn’t tax certain sales.

Lodging: Laws and Rules

Learn more about hotels, motels and short-term rentals:

Learn more about Idaho tax statutes 

Learn more about our Rules 

Explanation of Terms – Online Sellers

Economic nexus

As of June 1, 2019, retailers without a physical presence in Idaho (out of-state retailers) must collect Idaho sales tax if their sales in Idaho exceed $100,000 in the current or previous calendar year.

Marketplace facilitators

A marketplace facilitator is a person that provides a marketplace for third-party sellers. You’re a marketplace facilitator if you meet all three of the following criteria:

  1. You contract with third-party sellers to help them sell their products through a physical or electronic marketplace.
  2. You receive consideration for performing the contract (consideration payment, benefit, or even deduction of fees from a transaction).
  3. You engage, directly or indirectly, in any of the following:
    1. With respect to the seller’s product, you:
      1. Provide payment processing services
      2. Provide fulfillment or storage services
      3. List products for sale, set prices, or take orders
      4. Brand sales as those of the marketplace facilitator’s
      5. Advertise, promote, provide customer service (including help with returns or exchanges)
    2. You communicate the offer or the acceptance of the offer between buyer and seller.
    3. You own or operate the infrastructure (physical or electronic) or the technology that brings a buyer together with a seller.
    4. You provide a virtual currency that buyers use to purchase products from sellers.
    5. You or an affiliated person conduct software development or research and development described in section 3.a. (above) if the activities are directly related to a physical or electronic marketplace you operate for third-party sellers.

Physical presence

If you make sales in Idaho, you’re required to collect Idaho sales tax on those sales 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 lives in Idaho or another state.)

Presence also can be established by the relationship of one business to another that’s doing business in Idaho. See Idaho Code section 63-3615A.

VIDEO  Taxing Remote Sales In and Into Idaho

Click-through Nexus – Online Sellers

Are you out of state and have referral (“click-through”) agreements with Idaho retailers?

This sometimes is called relationship nexus.

You must have a valid Idaho seller’s permit, collect sales tax, file sales tax returns, and forward the tax to the state if you meet all these criteria:

To get an Idaho seller’s permit if you don’t already have one, see Take these steps.

Watch the Taxing Remote Sales in and into Idaho video

Laws and Rules for Online Sellers

Learn more about Idaho tax statutes 

Learn more about our Rules

Questions

If you have questions about your responsibilities in this area, please contact us at Submit a question or call (208) 334-7660 in the Boise area or toll free at (800) 972-7660.

Please note that due to the volume of emails we’re receiving, you should receive a response within 5 to 7 business days.

Online Sellers Guide

Should you be collecting sales tax on your Idaho sales? Are you a remote seller or do you operate an online marketplace?

An Idaho law affects retailers and marketplace facilitators as of June 1, 2019. Idaho passed the law in response to the U. S. Supreme Court Wayfair decision regarding economic nexus.

  • You might need to collect Idaho sales tax on sales in Idaho, even if you’re not located in the state.
  • If you already have an Idaho seller’s permit, you might need to get an additional permit if you operate as a marketplace facilitator.

Law requirements

Out-of-state retailers

Retailers without a physical presence in Idaho must collect Idaho sales tax when their sales in Idaho exceed $100,000 in the current or previous year. See Sections A and B of Guides for Different Business Types.

Marketplace facilitators

Marketplace facilitators without a physical presence in Idaho must collect Idaho sales tax when the combined total of their own sales in Idaho and their third-party sales in Idaho exceeds $100,000 in the current or previous year. They must have separate seller’s permits for their sales in Idaho and their third-party sales. See sections C, D, and E of Guides for Different Business Types.

Idaho retailers

Retailers with a physical presence in Idaho who also are marketplace facilitators must collect Idaho sales tax on their third-party sales in Idaho. They must have separate seller’s permits for their sales in Idaho and their third-party sales. See sections E and F of “Guides for Different Business Types.”

Retailers with a physical presence in Idaho must collect Idaho sales tax on their sales in Idaho. Read our Retailers guide for more information.

Out-of-state sellers who have certain agreements with Idaho retailers can find more information on the Click-Through Nexus page.

VIDEO  Taxing Remote Sales In and Into Idaho

Guides for Different Business Types – Online Sellers

This guide provides information for these businesses:

  • Out-of-state retailers (see sections A and B)
  • Marketplace facilitators (see sections C, D, and E)
  • Idaho retailers (see sections E and F)

A. Sales of $100,000 and under

This category of sellers means:

  • You’re a retailer without a physical presence in Idaho.
  • You have Idaho sales.
  • Your total sales in Idaho, including any made through a marketplace facilitator, didn’t exceed $100,000 in the current or previous calendar year.

If you meet all these criteria, you aren’t required to get an Idaho seller’s permit. Review your total sales in Idaho periodically to determine whether that changes.

B. Out-of-state retailers, sales exceeding $100,000

This category of sellers means:

  • You’re a retailer without a physical presence in Idaho.
  • You have Idaho sales.
  • Your total sales in Idaho, including any made through a marketplace facilitator, exceed $100,000 in the current or previous calendar year.

If you meet all these criteria, as of June 1, 2019, you’re a retailer engaged in business in Idaho.

You need to get an Idaho seller’s permit if you don’t already have one. See Take these steps.

For Idaho third-party sales you’re making through a marketplace facilitator, see Third-party sellers.

C. Combined sales of $100,000 and under

This category of sellers means:

  • You’re a marketplace facilitator without a physical presence in Idaho.
  • You have Idaho sales, Idaho third-party sales, or both.
  • The combined total of your own sales in Idaho and your third-party sales in Idaho didn’t exceed $100,000 in the current or previous calendar year.

If you meet all these criteria, you don’t have to get an Idaho seller’s permit.

Review your total sales in Idaho periodically to determine whether that changes.

D. Marketplace facilitators, sales in Idaho exceeding $100,000

This category of sellers means:

  • You’re a marketplace facilitator without a physical presence in Idaho.
  • You have Idaho sales, Idaho third-party sales, or both.
  • The combined total of your own sales in Idaho and your third-party sales in Idaho exceeded $100,000 in the current or previous calendar year.

If you meet all these criteria, as of June 1, 2019, you’re a retailer engaged in business in Idaho.

You need to get an Idaho seller’s permit if you don’t already have one. See Take these steps.

Note: If you already have an Idaho seller’s permit for your own sales, you need a separate permit for any third-party marketplace sales. You can register for another Idaho seller’s permit at tax.idaho.gov/ibr.

E. Idaho retailers who are also marketplace facilitators

This category of sellers means:

If you meet all these criteria, you need a separate permit for any third-party marketplace sales as of June 1, 2019. You can register for another Idaho seller’s permit at tax.idaho.gov/ibr.

F. Idaho retailers who make sales through a marketplace facilitator

For Idaho sales you’re making through a marketplace facilitator, note that as of June 1, 2019, Idaho law requires marketplace facilitators to collect and forward Idaho sales tax on third-party sales in Idaho. Have your marketplace facilitator provide written verification of the sales tax they’re reporting. If your marketplace facilitator isn’t collecting and forwarding tax on your sales, please include it on your own seller’s permit.

VIDEO  Taxing Remote Sales In and Into Idaho

Sales Tax: Filing and Paying

When you need to file and pay depends on the type of seller’s permit you have. You must file a return even if you didn’t make any sales. This is true no matter what type of seller’s permit you have.

If you’re late filing or paying

Interest

You owe interest on the overdue tax from the original due date of the return until the tax is paid. See annual interest rates.

Penalty

You owe a penalty if you:

  • Don’t file a tax return on time. The penalty is 5% of the tax due for each month the return is late, to a maximum of 25%.
  • File a return but don’t submit the tax due. The penalty is 0.5% of the tax due for each month the tax due is late, to a maximum of 25%.

Note: No penalty is due if no tax is due. The minimum penalty is $10. Even if your return or payment is only one day late, you still owe the entire month of penalty.

Filing and paying on temporary seller’s permits

For both types of temporary seller’s permits, you’ll use a simple form to report sales and submit the sales tax you collect. You must file a return even if you don’t make any sales.

Due dates

Temporary seller’s permits for your own sales activities and Idaho events where you sell

  • File and pay within 15 days after your permit’s expiration date.
  • Report all sales, including event sales.

Temporary seller’s permits for a specific event where you sell

  • File and pay within 15 days after the end of the event.
  • Report all sales for this event.

How to file

Online

Use TAP (if you have a TAP account). You can’t use TAP if you take a credit for Sales Tax Paid on Resale Merchandise.

Paper form

By mail or in person. Use the form we emailed you. Contact us if you can’t find that email.

How to pay

You must send in any sales tax you collect by your filing date. See the E-pay page for ways to pay.

Note: You can’t use Quick Pay.

Filing and paying on a regular seller’s permit

You must file a return even if you don’t make any sales.

With a regular seller’s permit, your schedule to file and send in tax is based on how much you sell. Before your due date, we’ll mail you a customized Form 850. If you have a TAP account, you’ll also see your return there.

Sales tax is due on the accrual method of accounting. That means you forward sales tax to the state with the return for the period in which you made that sale. This applies even if your customer hasn’t paid you by the time your tax return is due.

Due dates

We’ll set you up to file returns on a monthly, quarterly, semiannual, or annual basis.

  • Most retailers file returns every month. They forward the tax due for each month by the 20th day of the following month. If the 20th falls on a weekend or holiday, the return and payment are due on the next workday. For example, the taxes you collected in July are due by August 20.
  • Retailers who owe less than $750 tax per quarter pay their taxes quarterly. These taxes are due within 20 days after the end of the quarter.
  • Semiannually or annually. If you’re a distributor or a wholesaler with only a few sales, you can apply to file returns and forward taxes every six months, or once per year. Taxes paid every six months are due by July 20 and January 20. Taxes paid once per year are due by January 20.

See Due Dates for Sales/Use, Travel & Convention, Auditorium Districts, E911, and Withholding

 

Video: I missed my tax due date

What to report

Report all your sales on your Form 850. This includes any sales you made at events.

Important: Don’t report any sales you make through registered marketplace facilitators or short-term rental marketplaces that already report those sales to us.

How to file

You can file in one of these ways:

Online

Use TAP (if you have a TAP account). You can’t use TAP if you take a credit for Sales Tax Paid on Resale Merchandise.

Paper form

By mail or in person. Use the Form 850 we sent. Make sure the form is:

  • Preprinted with the correct period. (Don’t use forms from a previous month, quarter, or year.)
  • Preprinted with the correct employer name and account number. (Don’t use forms for a previous owner.)

Contact us if you can’t find the correct form.

Filing if you have no sales

You must file a return even if you don’t make any sales.

If you report “$0” sales for 12 months in a row, we’ll cancel your permit. A cancelled permit isn’t valid, and you can’t use it to make sales or buy goods for resale.

Filing an amended return

How to pay

You must send in any sales tax you collect by your filing date. See the E-pay page.

Retailers: Basics Guide

If you’re a retailer who does business in Idaho, you must do all of these:

Also see what goes into the Sales Price. 

Retailer defined

Any individual, business, nonprofit organization, or government agency can be a retailer. Retailers do any of these:

  • Sell to a consumer who won’t resell or lease the product
  • Make more than two retail sales during any 12-month period
  • Have no more than two sales, but make it known they sell taxable products or services
  • Both sell goods, and improve real property (e.g., a contractor/retailer)

If you’re a retailer, you must get a seller’s permit to:

  • Sell, lease, or rent tangible personal property
  • Rent hotel, motel, lodging, and campground accommodations
  • Sell magazine or newspaper subscriptions
  • Charge fees for admissions or recreation
  • Make sales using vending machines

Doing business in Idaho

You’re doing business in Idaho if you, your company, or your related company:

  • Owns property in Idaho
  • Has an office, warehouse, sales room, or employees in Idaho
  • Has sales representatives or agents in Idaho
  • Keeps goods in Idaho that will be sold

Recordkeeping

You must keep records of all the purchases and sales made by your business. Your records must show that you properly collected, reported, and forwarded taxes to Idaho.

You must keep the following records

  • Normal books of account (books of account can include information stored on computers)
  • Documents that support entries in the books of account. Examples: 
    • Bills
    • Receipts
    • Invoices
    • Cash register tapes
    • Job or work orders
    • Contracts
    • All schedules or working papers used to prepare your tax returns
  • Copies of sales tax resale or exemption certificates

Your records must show

  • Gross receipts from sales and services made in Idaho – even sales that you or your customer may consider exempt from tax. If you deliver the product or service somewhere other than your place of business, you must also keep records that prove where delivery took place.
  • The identity of customers claiming an exemption, the type of exemption, and what was sold exempt
  • All deductions claimed in filing returns
  • The total purchase price of anything bought for sale, rental, lease, or your own use
  • The amount of sales tax collected from your customer or that you paid to a vendor

You must keep all sales and use tax records for at least four years. You may need to keep them for seven years if you don’t file returns.

Keep all records for transactions involving sales or use tax, including these items:

  • Sales (and credit granted for returned items)
  • Purchases
  • Tax returns
  • Tax payments

Keep resale/exemption certificates as long as you do business with buyers, plus four years.

Laws and rules

Learn more about retailers:

Regular Seller’s Permit

You need a regular seller’s permit if all of these are true:

  • You make any Idaho sales of taxable goods or services (see Who needs a permit).
  • You sell anywhere other than registered marketplace facilitators or short-term rental marketplaces that collect and send in Idaho taxes for all your sales.
  • You don’t qualify for the occasional sales exemption or temporary seller’s permits.

You must get a regular seller’s permit if you sell more than allowed under the occasional sales exemption or a temporary seller’s permit. However, you can choose to get a regular seller’s permit even if you qualify for a temporary one.

Aren’t sure if you need a temporary or regular seller’s permit? See Who needs a permit.

Getting a regular seller’s permit

Before you apply for a regular seller’s permit, register your business with the State of Idaho. See Getting Tax Permits for more information about registering your business and getting your tax permits. When you get your permit, display it in a visible location at your business.

If you’re buying an existing business

You can’t use the seller’s permit for a previous owner of your business. Before you buy the business:

  1. Ask us for a Successors’ Liability Clearance Letter to see if the business owes sales tax that you could be responsible for paying.
  2. Withhold any sales or use tax due from the purchase price.
  3. Apply for a new seller’s permit (and any other tax permits you need) when the sale is final.

Remind the seller you’re buying the business from to cancel the tax permits for the business in their name.

Multiple locations

If you have more than one business location, you’ll receive a seller’s permit for each one. We’ll assign the same permit number to all locations that have the same business name. If your business locations have different business names, you must fill out a separate Idaho Business Registration application and get a separate permit for each one.

Filing and paying

With a regular seller’s permit, your schedule to file and send in tax is based on how much you sell. See Sales and Use Taxes: Filing and Paying.

More you should know

Every seller in Idaho who needs a seller’s permit is a retailer. See:

Laws and rules