You are reading 1StopVAT’s Minnesota sales tax guide. This article will explain the details of the sales tax in Minnesota (MN).
The article has been revised by our specialists at 1StopVAT with the most recent and relevant details on how sales tax functions in the North Star State.
You can find out a lot about sales tax, how it impacts both businesses and consumers, who are in charge of paying state sales tax, and where you can find out more.
Our sales tax guide can answer your questions about Minnesota state sales tax, such as if you need to register for Minnesota tax sales or what is the sales tax rate in Minnesota.
If you have more questions or require specific assistance, don’t hesitate to contact the 1StopVAT team for help.
A sales tax is a tax paid to a tax authority (state or local) on the sale of specified products and services. Minnesota enacted a general state sales tax in 1967, and the rate has since climbed to 6.875%.
In addition to the Minnesota sales tax rate, there may be one or more local sales taxes, ranging from 0 percent to 1.50 percent.
The total sales tax rate in Minnesota ranges from 6.875% to 8.375%, depending on the sale area.
Having a solid connection to the state is necessary to be required to collect Minnesota sales tax. Nexus establishes whether the state has the legal authority to require your business to procure, pay, and remit sales tax.
Remote or out-of-state sellers without a physical presence in Minnesota can establish sales tax nexus in the following ways:
A solicitor of goods sales on behalf of the retailer in Minnesota is an element of affiliate nexus.
When a business generates more than $100,000 in sales of taxable or exempt goods or services to Minnesota or completes 100 unique sales transactions there, economic nexus is established, and the remote seller is required to register with the state, collect, and pay sales tax in Minnesota.
Inventory in the State includes products held by Fulfillment by Amazon (FBA) merchants and kept at warehouses in Minnesota.
When companies exhibit at trade shows intending to sell, a trade show nexus is created. However, if you only attend trade shows, there is no nexus established.
You must provide specific information regarding your business to the Minnesota Department of Revenue to register for an online seller’s permit (via their website).
The DoR will ask you for company and personal information and projections of your upcoming sales.
In Minnesota, there is no fee to apply for a seller’s permit; however, there might be other business registration costs.
Please contact the 1StopVAT team for help if you need it with registration or anything else related to the sales tax rate Minnesota.
Discovering what goods and services are subject to tax or are excluded from it is necessary before calculating how much is the sales tax in Minnesota.
The majority of non-prepared food goods, purchases made with food stamps, and prescription medications are just a few examples of items excluded from sales tax Minnesota under the state law.
Healthcare, manufacturing, and software, among others, are exempted under state law from Minnesota state sales tax rate.
Material items in commercial operations such as tools, furniture, fixtures, and other equipment are considered tangible personal property.
Tangible personal property is taxable to businesses for Minnesota sales tax rates.
According to the Minnesota Department of Revenue, the Minnesota state sales tax rate is 6.875%.
Additionally, there may be one or more local sales taxes and special district taxes ranging from 0% to 1.5%, bringing the overall Minnesota sales tax percentage to 6.875 – 8.375 %.
If you want a quick way to calculate how much sales tax in Minnesota your company should collect, check out our Sales Tax Calculator or contact the 1StopVAT team.
You are in charge of transferring tax money from clients to tax authorities once registered with the Minnesota DOR and begun collecting sales tax rates Minnesota.
The Minnesota Department of Revenue will designate a filing schedule for your business.
A monthly, quarterly, or yearly frequency will be given to you. The frequency is based on your company’s volume or amount of sales.
For instance, more well-known companies are required to file more frequently. Both the sales and use tax Minnesota have filing requirements
We trust that we were able to answer all of your questions about Minnesota’s sales tax, including “what’s the sales tax in Minnesota.”
If you have any other inquiries, please do not hesitate to contact the 1StopVAT team.