Most people who sell goods in Idaho need a seller’s permit to collect and send in sales tax. However, you don’t have to do that if you qualify for the small seller exemption. This exemption typically applies to individuals who sell things like crafts, baked goods, art, or homegrown fruits and vegetables.
Whether you qualify for this exemption or not, it doesn’t apply to the sales of:
- Motor vehicles
- Trailers
- All-terrain vehicles
- Utility-type vehicles
- Specialty off-highway vehicles
- Lodging
- Off-road motorcycles
- Snowmobiles
- Aircraft
- Vessels
- Alcohol or tobacco products
- Admissions or entertainment
Who’s not a small seller?
You don’t qualify for the small seller exemption if any of these are true:
- You aren’t an Idaho resident.
- You’re operating as a corporation, partnership, or limited liability company (LLC).
- You exceed $5,000 in gross sales in either the current or previous calendar year.
- You maintain a permanent location to conduct business in Idaho.
- You buy untaxed products to resell, or purchase untaxed materials specifically to be incorporated into items for resale.
- You’re a contractor because you’re the end user of the materials you purchase.
Who qualifies for the small seller exemption?
You might qualify for the small seller exemption if all the following are true:
- You’re an Idaho resident.
- You operate as an individual or sole proprietorship.
- Your gross sales are $5,000 or less in the current or previous calendar year.
- You don’t operate through a business entity such as a corporation, partnership, or LLC.
- You don’t maintain a permanent place of business such as an office, warehouse, or storefront in Idaho.
- You don’t keep a stock of goods with the intent to exceed the $5,000 sales threshold.
Important
If you qualify for the small seller exemption by meeting all of the above, remember:
- As a small seller, you must pay sales or use tax on all goods and materials you buy.
- You don’t need to apply for a seller’s permit or file paperwork with us.
Responsibilities of small sellers
If you qualify for the small seller exemption, you won’t collect sales tax on sales you make. However, you must do all of these:
- Pay sales or use tax on items you buy.
- Keep records for at least four years, if sales exceed $3,000.
- When asked, provide proof of exemption on a receipt or invoice that your sale is exempt from sales and use tax.
- Register with us if you sell at an event. The promoter will have instructions. Select I am not making taxable sales and enter “Idaho resident small seller” in the Products I am selling field.
- Claim the income you made from selling on your individual income tax return and file the return, if you meet filing requirements.
If you sell more than $5,000
If your gross sales in the current or prior calendar year exceed $5,000, you no longer qualify for the small seller exemption. Instead, you must:
- Immediately begin collecting sales tax. (Don’t collect or send sales tax on the original $5,000 in gross sales.)
- Apply for a temporary or regular seller’s permit within 30 days.
- Start sending in state sales and use taxes once you receive your permit.