The North Dakota (ND) state sales tax rate is currently 5.0%. Depending on local municipalities, the total tax rate can be as high as 8%.

Other, local-level tax rates in the state of North Dakota are quite complex compared against local-level tax rates in other states. North Dakota sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels.

North Dakota sales tax has numerous local taxing levels that must be monitored and maintained on a regular basis, it is complex and time consuming due to the volume of jurisdictions.

Amazon.com owns and operates a customer service center in North Dakota. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs.

North Dakota imposes sales tax on retailers’ gross receipts. Cities or counties that have adopted home rule charters may levy sales and use and other taxes at the local level.

North Dakota is a Streamlined Sales Tax state. Out-of-state retailers may be liable for sales and use tax and are encouraged to register with the state.

How to Register

Businesses are encouraged to register online through WebFile, and the Department of Revenue provides detailed guidelines and registration instructions. Businesses may also complete a paper form and return it to the Department.

Businesses selling into multiple states may register with the Streamlined Sales Tax Registration System.

How to File and Pay

Holders of North Dakota sales and use tax permits are encouraged to file sales and use tax returns online through North Dakota Sales Tax WebFile. Businesses registered through WebFile do not receive paper returns from the Department of Revenue. All sales and use tax forms are available through the Office of the State Tax Commissioner.

Businesses that reported more than ten local taxes in the previous year should use Schedule ST-Local to report all local taxes. Businesses that reported ten or less local option taxes should look at the Local Option Tax section on Form ST for information about each local jurisdiction. See ND Tax for additional information about local option taxes.

Businesses making more than $333,000 of taxable sales and purchases in North Dakota in the previous calendar year are required to file monthly returns.

Deadlines

Sales and use tax returns and payments must be postmarked by the US Postal Service on or by before the last day of the month following the reporting period. Additional dates are listed on the Sales and Use Calendar.

Avalara Sales and Use Tax Products for North Dakota

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

North Dakota Office of the State Tax Commissioner