SALES AND USE TAX REPORTING
You must obtain a sales tax permit if:
- You are engaged in business in Nebraska and you are selling tangible personal property or providing taxable services in Nebraska to customers in Nebraska.
- You acquire tangible personal property or taxable services from out-of-state suppliers that do not hold a Nebraska permit.
- When you sell taxable items (tangible personal property or taxable services) you must collect state sales tax plus the appropriate local sales and use taxes. Your taxable sales will be included on your sales tax report as taxable sales.
- If you are making sales for resale, you must obtain a resale certificate (Form 13) from the purchaser at the time of the initial sell. The resale certificate must be properly and completely filled out. If the purchaser (description) is not the type of business that would resale the merchandise that you are selling, you may consider rejecting the certificate.
- If you are making sales that are exempt, you must obtain an exemption certificate (Form 13) from the purchaser at the time of the initial sell. The exemption certificate must be properly and completely filled out. Exemption certificates will in general be limited to non-profit entities, governmental entities, agriculture, etc.
- Resale certificates and exemption certificates are the only acceptable proof that taxable items are being sold for resale or qualify for exemption. You do not need a copy of the sales tax permit or any other documentation; they are not proof that the items being sold qualify for resale or exemption.
- When you purchase taxable items (tangible personal property or taxable services) you must pay sales tax whether the purchase is made in the state or shipped into the state. If Nebraska sales tax is not included on the invoice, you (the purchaser) are required to pay use tax on the purchase. This will be included on your sales tax report as taxable purchases.
- If our office is preparing sales tax reports, and you have purchases subject to use tax, you will need to monitor your purchases and advise this office of those purchases to be reported on your sales tax report.
Records to Keep
- Copies of Sales Tax Reports and the basis of the calculations used to prepare the report.
- Copies of sales invoices with an adequate description of the sale and the sales tax collected.
- Copies of resale and exemption certificates (Nebraska Form 13), you are not required to update the certificates, certificates should be maintained for four years past the last sell to the customer.
- Copies of purchase receipts and statements showing that proper sales tax was paid at the time of purchase for all purchases and expenses subject to sales and use tax. If the purchase is a taxable purchase and no taxes were paid, use tax is due and records should be maintained with the sales tax report documenting which purchases were included as taxable purchases on the sales tax report.
The sales and use tax rules are complex and industry specific, this is only a highlight of sales and use tax issues. As a business owner, you should be familiar with the sales tax rules that affect your specific industry. For more information on sales and use tax, you can visit Nebraska Department of Revenue http://www.revenue.state.ne.us On the website there is Forms, Frequently Asked Questions and Information Guides on Sales and Use Tax.