Almost every seller in Idaho needs a seller’s permit. Sellers are individuals, businesses, nonprofit organizations, or government agencies that do any of the following:
- Make more than two sales during any 12-month period.
- Make it publicly known that they sell taxable products or services.
- Sell to a consumer who won’t resell or lease the product.
- Both sell goods and improve real property (e.g., contractor retailers).
- Out-of-state retailer making sales into Idaho of more than $100,000 in any 12-month period (economic nexus).
- Out-of-state retailer making sales into Idaho of more than $10,000 in any 12-month period through a retail referral agreement (click-through nexus).
- Have others in Idaho selling, delivering, installing, or taking orders for their goods. This includes multilevel marketing companies and networking companies.
Doing any of these activities makes you a retailer, and you need a seller’s permit. In addition to the information on this page, see:
When you don’t need a seller’s permit
You don’t need a seller’s permit if you qualify for the occasional sales exemption. You can take advantage of this exemption if both of these are true:
- You make only two or fewer sales of taxable goods or services in any 12-month period.
- You don’t make it publicly known that you sell taxable products and services. (You aren’t in the business of selling.)
See Occasional Sellers for more information.
The only other time you don’t need an Idaho seller’s permit is if you sell only on third-party websites or social media sites that register with the Tax Commission as marketplace facilitators. These third-party sellers report your sales, collect Idaho sales tax, and forward it for you. You’ll just need to verify they’re reporting your sales to us.
Renting out lodging through short-term rental marketplaces is a little different. The short-term rental marketplace must collect and send in all taxes due for all your sales. Otherwise, you still need permits. See Hotels, Motels, and Short-Term Rentals and common charges for property and services.
Temporary or regular seller's permit?
If you need an Idaho seller’s permit, Idaho has two types: temporary and regular. And, there are two kinds of temporary seller’s permits.
You can’t get a temporary seller’s permit if you sell, lease out, or rent out vehicles. You also can’t get a temporary seller’s permit if you rent out short-term lodging. You need a regular seller’s permit. The only exception for lodging is if you only rent out on short-term rental marketplaces such as Airbnb or VRBO, and those marketplaces collect and send in all taxes due for all sales you make. You’ll just need to verify that they’re reporting your sales.
For other businesses, the following chart might help you determine which permit you need. Applying for any of these permits is free.
* Any combination of the temporary seller’s permits
A promoter-sponsored event is either of these:
- A regular series of events where people conduct business (e.g., farmers markets, swap meets, flea markets, gun shows, and fairs).
- An event where two or more persons offer, sell, or exchange products or services. The event promoter charges them a fee to appear, charges attendees a fee to enter, or both.
Promoters need to register their events with the Tax Commission. Anyone selling at the event needs to register for that event and make sure they have a seller’s permit. See Promoter-Sponsored Events for more information.
Religious groups, nonprofits, and schools
Religious groups and nonprofits that sell at events (or anywhere else) must get a seller’s permit, collect sales tax on sales they make, and send in the tax, unless an exemption applies. See Sales a Nonprofit Makes.
Religious groups and nonprofits that host events like bazaars or fairs are promoters. They must register the event unless it meets specific criteria. See Nonprofits and Religious Groups and Promoter-Sponsored Events.
Internet and mail-order businesses
- If your business is in Idaho, you must get a regular seller’s permit, collect sales tax from Idaho buyers, and forward the tax to us.
- If your business isn’t in Idaho but you’re doing business in Idaho, you must get a regular seller’s permit, collect sales tax from Idaho buyers, and forward the tax to us.
The only exception is when you sell only with marketplace facilitators such as Wayfair, and those sites collect and send in the taxes due to us. You’ll just need to verify that they’re reporting your sales.
Multi-level marketing (MLM) and networking businesses
Multi-level marketing and networking businesses are companies that use their members to sell products directly, often in home. The sellers are often called “distributors.” Sometimes the distributors recruit others to sell the product and receive payment based on sales made by the sellers they recruit.
If you’re an MLM, we’ll generally require you to get a seller’s permit and collect and forward taxes on all sales made to or by your distributors and the sellers they recruit. This way, your distributors won’t need to have a seller’s permit. You’ll need to give them your Idaho seller’s permit number to keep in their files.
You have to collect the correct tax amount from your customers. Your sales invoices must show the amount of tax you charged your customer.
If you keep adequate sales records
- You can sell products to your distributor at the wholesale price but submit sales tax on the actual retail price to the final customer.
- If your distributor is the final customer, the wholesale price you charge becomes the retail price.
Note: To keep adequate sales tax records, you must work closely with your distributors to determine who the final customer is. If you don’t keep adequate sales records, you must collect sales tax on the suggested retail price.
Selling before you get a seller’s permit
You could be fined if you start your business without applying for the permit. It takes time to get your permit, so it’s best to plan ahead. If you can’t wait to open your business until you receive a permit, keep a copy of your application to prove you’ve applied. Collect the correct tax from your customers, and forward the tax when you receive your permit and tax returns.
Other tax requirements
Whether you’re in business for yourself, or you represent a corporation or partnership, you’ll need to file an Idaho income tax return if your gross income from Idaho meets the filing requirement. If you have employees in Idaho, you may also need to file and pay employee taxes.