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: