Sales Tax is statutorily imposed on the sale, transfer, barter, licensing, lease,
rental, use or other consumption of tangible personal property in Nevada.
Sales/use legislation was initially enacted in Nevada in 1955.
Who is affected?
Persons who are in the business of selling or transferring tangible
When is sales tax due?
Taxes are due in the period when the sales transaction takes place and
cannot be delayed until the retailer actually receives payment from the
What is taxable?
Nearly all tangible personal property transferred for value is
taxable. Most goods, wares and merchandise are taxable in Nevada.
Services necessary to complete the sale of tangible personal property are
taxable. Only installation and repair/reconditioning service is not taxable if
it is separately stated on the invoice and as of May 2009 transportation,
shipping and postage charges are not taxable if separately stated on the customer's
invoice. Other items that are not taxable include unprepared food, farm
machinery and equipment, newspapers, and interest, finance and carrying charges
on credit sales. You may write to the Department of Taxation at any of the
District offices about the taxability of a specific item.
Are delivery charges taxable?
As of May 22, 2009 any charges for freight, transportation or delivery in connection with the sale of tangible personal property separately stated to the end user are NOT taxable pursuant to AB403. Handling, packaging, and crating or any other services in connection with the freight, transportation or delivery are still taxable even if separately stated. Charges for freight or transportation before the sale of tangible personal property (in-bound freight) is taxable as either part of the sales price of the product or a pass through freight charge stated separately from the product sold on the invoice to the end user.
Is the lease or rental of tangible personal property taxable?
Yes. Sales tax is due from the lessee on all tangible personal
property leased or rented. An option is given on how to pay this tax.
Sales Tax can be paid on the total cost at time of purchase of the property, or
Sales Tax can be paid on the total lease or rental charges within this
State. NRS 372.060, 372.085, 372.105
Is labor taxable?
Fabrication labor is always subject to Sales/Use Tax when the tangible
personal property is sold at retail. Repair/reconditioning and
installation labor is not subject to tax if it is separately stated on the
invoice. NAC 372.380, 372.390-372.400 and NRS 372.025 and
I am in the business of consulting, is this subject to Sales Tax?
In Nevada, Sales/Use Tax is imposed on the sale, transfer, lease,
rental, use, or other consumption of tangible personal property for
consideration. Services not in conjunction with a sale of tangible
personal property are not subject to Sales Tax. However, the provider of
the services has a Use Tax liability on the materials and equipment used or
consumed in providing the service. Nevada Revised Statute
372.085, 372.105 and 372.185
Are vehicles, aircraft, and off highway vehicles purchased in another state subject to Nevada Sales Tax?
Yes, if they are purchased for use or storage in Nevada. In order to be
registered in Nevada, proof that Sales Tax has been paid to Nevada or another
state is required on all licensed vehicles (cars, trucks, motorcycles,
trailers) aircraft and off highway vehicles. If proof cannot be provided, Use
Tax must be paid to Nevada. Sales Tax legitimately paid to another state is
applied as a credit towards Nevada Use Tax due. NAC
372.055, NRS 372.185
Do I have to pay Nevada Sales Tax when I purchase a boat?
Yes, if the boat is purchased for use or storage in Nevada. Nevada does
honor Sales Tax paid to another state in an amount equivalent to Nevada's.
If you purchased a boat and trailer from an out-of-state dealer and paid Sales
Tax to that state at an equivalent rate, your Sales Tax obligation has been
met. If you paid Sales Tax at a lesser rate to another state, you
will need to pay the difference directly to Nevada. If you did not
pay Sales Tax at the point of purchase, then Nevada Sales/Use Tax is owed on
the purchase price, including all accessories. Please, bring all pertinent
documentation to the Department of Taxation office to pay the tax and receive a
tax clearance, you may then proceed to the Department of Motor Vehicles to
register the trailer and the Division of Wildlife to complete the required
registration for the boat. NAC 372.055
Is beer, wine, and liquor subject to Sales Tax?
Sales Tax applies in the retail sales of beer, wine, and liquor to the
entire amount charged for the product, including the amount of all other state
and federal taxes imposed on the product. NAC 372.150
Is the gas to heat my home taxable?
The gross receipts from the sale, furnishing or service of, and the
storage, use or other consumption of any matter used to produce domestic heat
by burning, without limitation, wood, coal, petroleum and gas are exempt from
Sales and Use Tax in Nevada. NRS 372.300
Is the sale of coins or uncancelled stamps subject to Sales Tax in Nevada?
The sale of postage stamps through vending machines is not subject to
Sales Tax because such stamps represent an intangible right to receive services
and are not tangible personal property. The tax applies to sales of coins
and uncancelled stamps at a premium price (exceeds 50% of the face value) for
purposes other than use as a medium of exchange or postage. The tax does
not apply to sales of coins or uncancelled stamps, even though sold at a
premium price, if the purpose of the use of the coins or stamps is as a medium
of exchange or postage. NRS 372.085 and NAC 372.170
Is software, electronic magazines, clipart, program code, or other downloaded material taxable to Nevada residents?
No. Products delivered electronically or by load and leave are not
subject to Nevada Sales or Use Tax. However, products ordered via the internet
and shipped into Nevada are taxable, as well as any software transferred via a
disk or other tangible media. A box of software or other product shipped to
customers in this state is physical, tangible personal property and subject to
Do all companies automatically add Sales Tax to taxable mail order, out-of-state, internet and telephone purchases?
No, only companies registered to collect Nevada Sales Tax. If a seller
is not registered to collect and remit Nevada Sales Tax, the Nevada purchaser
must pay Use Tax directly to the State of Nevada.
Can Sales Tax be included in the price of a purchased item?
Yes. However, it must be specifically and clearly stated that
"Nevada Sales Tax is included" in the price paid. A retailer may
include the tax in the sales price of an item but if he does so, he shall
notify the public by posting a sign which is visible to all customers or on the
sales receipt a statement that the Sales Tax is included in the sales
price. In the absence of such a notification, the total amount charged to
the customer shall be deemed to be the price of the item. NAC 372.760
What is Streamlined Sales Tax?
The goal of this effort is to find solutions for the complexity in state
sales tax systems that resulted in the U.S. Supreme Court holding that a state
may not require a seller that does not have a physical presence in the state to
collect tax on sales into the state. The Court ruled that the existing
system was too complicated to impose on a business that did not have a physical
presence in the state. The Court said Congress has the authority to allow
states to require remote sellers to collect tax.
The result of this work is the Streamlined Sales and Use Tax Agreement.
The purpose of the Agreement is to simplify and modernize sales and use tax
administration in order to substantially reduce the burden of tax compliance.
The Agreement focuses on improving sales and use tax administration
systems for all sellers and for all types of commerce.
Does Nevada offer incentive programs for Sales/Use Tax?
Nevada offers Sales/Use Tax deferral and Sales Tax abatement programs on
the purchases of capital equipment for a new or expanding business. All
companies interested in these incentive programs can contact The Commission on
Economic Development at (775) 687-4325 or at http://www.expand2nevada.com
for an application. NRS 372.397, NRS 374.357, NAC
Does Nevada have a voluntary disclosure program for Sales/Use Tax?
Yes, In accordance with NAC 360.440 through 360.448,
a taxpayer may apply for voluntary disclosure with the Department which may
result in waiver of penalty and interest. The Nevada Tax Commission has the
final approval authority for the waiver. The taxpayer or his representative
must file an application for voluntary disclosure before the Department has
initiated an audit or investigation of the taxpayer. If a taxpayer is registered
for one tax type and voluntarily discloses another tax type, they can qualify
for waiver of the penalty and interest pertaining to the newly disclosed tax
only. The Nevada Tax Commission has the final approval authority for the
waiver. The application for voluntary disclosure can be found by clicking on
the Forms tab.
Is there a Sales/Use Tax exemptions for non-profit organizations?
Yes, but organizations are not automatically exempt by their Federal
501(c) status. Nevada Revised Statute (NRS) 372.326 provides for an exemption
from Sales/Use Tax for non-profit organizations created for religious,
charitable, or educational purposes, however, organizations must apply for, and
receive approval for exempt entity status by the Department of Taxation. If an
organization qualifies, it will receive a letter from the department stating it
is exempt. Organizations are not automatically exempt by their Federal 501(c)
(3) status. The Application for Exempt Status is a two page
form and can be downloaded by clicking on the Tax Forms tab. Automatically
downloaded with the application are the related statutes that define the
requirements for qualification. An exempt organization must renew its status
every five years. Nevada state and local government agencies and agencies of
the federal government are exempt by statute (NRS 372.325 & NAC 372.680),
so an exemption letter from the Department is not required.
Where is my Sales/Use Tax Exemption number?
The Department has an approval process to review organizations applying
for the religious/charitable/educational Sales/Use Tax exemption program. Upon
approval, an exemption letter on Department letterhead with an exemption number
will be issued then mailed to the qualifying organization. NRS 372.3261
What is a "Resale Certificate” and how is it used?
If tangible personal property is being purchased for resale at retail,
or to incorporate the property into a final product for sale or resale, that
purchaser can provide the vendor with a "resale certificate". The
certificate represents the purchaser's assurance that the property is for
eventual resale and the tax will be charged then. The certificate must contain
a general description of the kind of property purchased for resale and the
buyer's and seller's name. If delivered electronically it does not have to be
signed. Resale certificates should be updated every two to three years. Out of
State resale certificates are acceptable in Nevada as long as they contain the
above mentioned requirements.
Where can I get blank “Resale Certificate”?
Blank resale certificates can be purchased at most stationery stores. It
is important, however, to make sure the form you purchase complies with NAC 372.730, which shows
the form must include the items mentioned above. You can also download a
blank resale certificate by clicking on the Forms page.
How do I amend a Sales Tax Return I’ve already submitted?
Nevada does not have a specific form to amend your Sales Tax return. You
may amend a previously filed Sales/Use Tax return by one of two methods:
Method A-Amend Individual Tax Returns:
1. Copy the Sales/Use Tax
return for the period (month/quarter) in which sales/use was originally paid.
2. Write “AMENDED” in black, in the upper right hand corner of the tax return.
3. Line-through original figures for each county in which tax was originally
reported, in black, leaving original figures legible.
4. Enter corrected figures, in black next to lined through figures.
5. Indicate amount of credit claimed.
6. Include a written explanation and documentation substantiating the basis of
the credit claim.
7. Indicate whether a refund is requested or whether a credit will be used to
meet current/future tax liability.
Method B-Spreadsheet to include:
1. Periods (months/quarters) in which tax was originally paid and county in
which tax was originally reported.
2. Original tax measure and original amount of tax paid and county in which
3. Corrected tax measure and corrected amount of tax due/credit claimed for
each county where tax originally reported.
4. Total amount of tax credit claimed for all periods in all counties.
5. Include a written explanation and documentation substantiating the basis of
the credit claim.
6. Indicate whether a refund is requested or whether a credit will be used to
meet current/future tax liability.
How do I make a payment online?
You may make your payment online by logging into your “NevadaTax”
account. Place your cursor above the word “pay”, click on either “pay an
underpaid account period” or “schedule a payment”. Continue with the
instructions given. We currently accept ACH debit payments as well as ACH credit.
Why do I still owe Sales Tax after I filed Chapter 7 bankruptcy?
The bankruptcy trustee is appointed to liquidate your nonexempt assets
and pay your creditors according to the priority set by the bankruptcy code.
Usually there are insufficient funds to cover your debts, which is why you
filed for bankruptcy protection initially. A discharge is granted to
provide you relief from your debts. However, a discharge only cancels those
types of debts which are entitled to a discharge under the bankruptcy code.
Often people are surprised to find that certain types of debts are exempt from
the discharge and therefore collectible after the discharge is
granted. Sales Tax is exempt from the discharge granted in bankruptcy
because it is a priority tax debt. Your liability for priority taxes is
never canceled under a Chapter 7 discharge, because priority taxes (including
penalty and interest) are a non-dischargeable debt under 11 U.S.C. sec 523
(a)(1)(A). This gives the Department the right to pursue collection of this
debt once your discharge is granted. If you filed a Chapter 13 debt
adjustment or Chapter 11 reorganization, you would pay your priority taxes
through your bankruptcy plan. If your bankruptcy was dismissed or
converted to a chapter 7, you would have to make arrangements with the
Department to pay your remaining tax balance. You should discuss any
legal issues you may have with your attorney.