Welcome to our handy guide on Kansas sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Kansas to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Kansas.
Sales Tax Rate
Kansas Department of Revenue
Physical NexusThis happens when your business has a real, physical tie to Kansas. Think of things like owning or renting a space (office, warehouse, store), having employees in Kansas, storing inventory, or collaborating with a third-party provider rooted in Kansas. If this sounds like you, then yep, you’ll need to collect and remit sales tax for your Kansas customers.
Economic NexusHere’s where numbers come into play. In Kansas, if your business's annual sales – including both taxable and exempt transactions – top $100,000 in the current or previous year, you've got an economic nexus. Cross this threshold, and it's time to start collecting and remitting sales tax in Kansas.
Affiliate NexusGot a close connection with another entity in Kansas, like a subsidiary or a shared ownership company? This could mean an affiliate nexus for your business, bringing you into the Kansas sales tax fold.
Click-Through NexusThis one's all about online referrals. If you've got a Kansas-based partner (like a blogger or influencer) driving traffic to your site through a link, and you pay them for it, listen up! If these referrals bring in over $10,000 in sales in the past 12 months, you've entered the realm of click-through nexus in Kansas, meaning it's time to handle sales tax.
Marketplace NexusSelling through online marketplaces like Amazon, eBay, or Etsy? If these platforms have a taxable presence in Kansas, they're typically the ones handling sales tax for you. But keeping tabs on the sales tax they collect is still a smart move for your peace of mind.
In Kansas, if you fill a balloon with helium, it’s taxable. It’s a tax that literally rises
How to Register for Sales Tax in Kansas
Cost of Registering for a Kansas Sales Tax LicenseHere’s some great news - registering for a Kansas sales tax license is completely free!
Need an EIN for Kansas Sales Tax Registration?Most likely, yes. You’ll need an EIN to register. If you’re a sole proprietor without employees, your SSN will do. You can get an EIN directly from the IRS website.
Other Kansas Agencies You Might Need to Register WithYour business might also need to register with other Kansas agencies, such as:
Is Kansas an Origin or Destination Sales Tax State?Kansas plays by the destination-based sales tax rules. This means you'll be collecting sales tax based on where your customer is located, not where you are. So, for every sale in Kansas, remember to apply the sales tax rate of your customer’s shipping address, whether it’s a home or a business.
What Sales are Taxable in Kansas?In Kansas, you’re looking at collecting sales tax on:
What About Software as a Service (SaaS)?Yes, SaaS gets taxed in Kansas. It's seen as a taxable service because it’s essentially providing access to prewritten software.
Kansas Sales Tax Exemptions - What’s Off the Hook?There are a few things Kansas doesn’t tax:
Who Gets a Sales Tax Pass in Kansas?Some folks in Kansas don’t have to pay sales tax:
Handling Tax-Exempt Customers in KansasGot a customer who’s exempt from sales tax? Make sure to grab a completed Kansas Exemption Certificate (ST-28) from them. Keep this document safe – it’s your proof if there’s ever a sales tax audit.
Lost an Exemption Certificate?Misplaced a Kansas sales tax exemption certificate? No stress, just ask your customer for a new one pronto. You need this to prove the tax-exempt sale and to stay clear of trouble during audits.
Pet grooming in Kansas is taxable. Apparently, Fido’s haircut comes with a little extra.
Weekend or Holiday Due DatesIf a due date falls on a weekend or holiday, no worries! The deadline shifts to the next business day. Keep an eye on the Kansas Department of Revenue’s website for holiday details that might affect your schedule.
How to File a Kansas Sales Tax ReturnFiling your sales tax return in Kansas is easier than it sounds. Here’s how to do it:
Penalties to Watch Out ForMissing deadlines can lead to penalties, like:
Kansas Sales Tax IncentivesKansas also offers some nice incentives for businesses:
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