The state of Minnesota is aggressively pursuing Sales and Use Tax collections through increased audits; as witnessed by a number of our clients who are experiencing them.  When we were audited, we forgot the use tax for supplies we purchased on the Internet.  It caught us by surprise.  Regardless of whether or not you sell taxable items, you must file a use tax report if you purchase taxable items on which you paid no sales tax. According to the Minnesota Revenue website www.taxes.state.mn.us, you should be collecting sales tax if you do any of the following in Minnesota:

  • Make sales of taxable goods or services
  • Attend trade shows and display goods
  • Solicit sales
  • Make repairs, do warranty work, or provide or arrange for maintenance or service to property sold
  • Install or assemble products
  • Investigate, handle or otherwise assist in resolving customer complaints
  • Provide customers any kind of technical assistance or service, including but not limited to, engineering assistance, design service, quality control, product inspection, or similar services
  • Make deliveries in vehicles owned, leased, or maintained by you or a party acting on your behalf
  • Maintain an office, place of distribution, sales or sample room or place, warehouse, or other place of business either directly or by a subsidiary
  • Have a representative, agent, salesperson, canvasser, or solicitor (either permanent or temporary), who operates under your authority or your subsidiary in Minnesota for any purpose, including repairing, selling, delivering, installing, or soliciting orders for the retailer’s goods or services
  • Lease taxable items

 Since each sales tax situation is unique, you should consult the appropriate sales tax fact sheets (also found at www.taxes.state.mn.us) to determine if your specific circumstances require you to register and collect Minnesota sales tax.