If I start a new service-related business or purchase an existing service-related business, what are my sales and use tax responsibilities?
A service-related business may not be required to obtain a North Dakota sales and use tax permit. Even though, as a service provider your services may not be subject to sales tax, you may have a use tax obligation on purchases made to operate the business if you did not pay sales tax to your supplier at the time the equipment, supplies and materials were purchased. If the business purchases all equipment, supplies and materials from retailers that collect North Dakota tax and applicable local tax, no permit is required. If occasional purchases are made from out-of-state vendors that do not collect the appropriate taxes you will be required to report the purchases and remit the use tax using our One-Time Sales and Use Tax Return. North Dakota law also requires a business operating under a trade or business name to register the name with the North Dakota Secretary of State. To register a name, please contact the Secretary of State at (701) 328-4284.
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