North Dakota Sales Tax Guide
Chapter 5: Filing and paying North Dakota sales tax
You're registered with the North Dakota Office of State Tax Commissioner and you've begun collecting sales tax. Congratulations! Remember, those tax dollars don't belong to you. As an agent of the state of North Dakota, your role is that of intermediary transferring tax dollars from consumers to state and local tax authorities. Let's take a deeper look at how filing North Dakota sales tax returns impacts your business.What does it mean to file an North Dakota sales tax return?
Technically speaking, filing North Dakota sales tax returns is a two-step process comprised of submitting the required sales data and remitting the collected tax dollars (if any) to state and local tax authorities.
In most states, there are a number of options for submitting sales tax data to the state. Business owners may complete a North Dakota sales tax filing form and mail it to the North Dakota Office of State Tax Commissioner or they can file electronically online. In all states, filing online is recommended.
The filing process forces the business owner to detail their total sales, the amount of sales tax they have collected, and from where. The North Dakota Office of State Tax Commissioner wants to be kept up to date on your business growth (or lack thereof) to make sure they are getting the tax dollars due. By completing ongoing filing of monthly, quarterly, or semi-annual, or annual North Dakota sales tax returns, they stay abreast of your growing company.When am I required to file my sales tax return?
The North Dakota Office of State Tax Commissioner will assign you a filing frequency. Typically, this is determined by the size of your business. State governments typically ask larger businesses to file more frequently. Visit our North Dakota filing due dates page for more information.Am I required to file and pay my North Dakota sales tax at the same time?
North Dakota sales tax returns must be filed and paid at the same time and are governed by the same due date.I want to webfile my North Dakota sales tax. What are my options?
Avalara has built the TrustFile product to allow business owners a quick and easy way to prepare and webfile North Dakota sales tax returns. Users can sign up and use the service to prepare North Dakota returns free for 30-days.
Filers may also file directly with the North Dakota Office of State Tax Commissioner by visiting their site and entering your transaction data manually. This is a free service, but preparing North Dakota sales tax (breaking it down by jurisdiction) can be time consuming - especially for larger sellers.Can a 3rd party file my sales tax on my behalf?
Yes! Many business owners recognize they are not a tax professional and therefore, choose to outsource their sales tax sales and use tax filing to services like Avalara TrustFile or to an accountant or bookkeeper. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and a lack of deep knowledge about North Dakota sales tax code.What happens if I file or pay my sales tax return late?
Should you file a North Dakota sales tax return late the following penalties are imposed:
- A minimum penalty of 5 percent of the tax due or $5.00, whichever is greater, will be added to the tax due for the first month the return is late.
- For each additional month (or fraction thereof) that a return remains late an additional penalty of 5 percent of the tax due will be assessed up to a maximum of 25 percent of the tax due.
The North Dakota Office of State Tax Commissioner does not assess interest for the first month a return is delinquent. However, interest of 1 percent of the tax due will be assessed for each month or fraction of a month after the first month that a return is late. Penalty and interest is calculated separately for sales/use tax and gross receipts tax.Do I need to file a return if I didn't collect any sales tax in North Dakota?
Yes! Once you've successfully registered for and been issued a Sales & Use Tax Permit, you are required to file at the completion of each assigned collection period regardless of whether any sales tax was collected. This is what is known as a "zero-tax filing".
Failure to submit a required zero-tax filing can result in penalties imposed on your business by the North Dakota Office of State Tax Commissioner so don't take this responsibility lightly.If I close my business, do I need to file a final sales tax return?
Yes! The North Dakota Office of State Tax Commissioner requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.Does the North Dakota Office of State Tax Commissioner offer a discount for filing on time?
Vendor discounts are rebates offered to tax filers by state tax jurisdictions to compensate filers for the effort involved with collecting, filing, and remitting sales tax in a timely manner. Such discounts are frequently cited as outdated by those who see them as a tax loophole for big businesses. With online buying and SaaS services like Avalara TrustFile, the days of managing receipts, balancing books, and writing checks to the state have long since been replaced by computer automation.
The North Dakota Office of State Tax Commissioner currently offers a vendor discount (also known as a dealer collection allowance) of 1.5% with a maximum of $110 per month and a minimum of no minimum.