When is a mail-order company responsible for the collection of North Dakota sales tax?
If a mail order company has sufficient physical presence in North Dakota, sales tax must be applied to all sales of tangible personal property delivered into North Dakota. This includes sales made through the companys Internet web site. Purchases delivered outside of North Dakota are sales in interstate commerce, which are not subject to North Dakota sales tax. Mail order and Internet sales made to North Dakota customers by a company located outside of North Dakota are subject to sales or use tax in North Dakota if the company has sufficient physical presence in the state either on a temporary or permanent basis. Sufficient presence to register and collect the tax may include, but is not limited to, owning property (i.e., warehouse, repair facility, lease or rental equipment) or having employees or agents working in this state.
If a mail order company has sufficient physical presence in North Dakota, sales tax must be applied to all sales of tangible personal property delivered into North Dakota. This includes sales made through the companys Internet web site. Purchases delivered outside of North Dakota are sales in interstate commerce, which are not subject to North Dakota sales tax. Mail order and Internet sales made to North Dakota customers by a company located outside of North Dakota are subject to sales or use tax in North Dakota if the company has sufficient physical presence in the state either on a temporary or permanent basis. Sufficient presence to register and collect the tax may include, but is not limited to, owning property (i.e., warehouse, repair facility, lease or rental equipment) or having employees or agents working in this state.
