Starting a business in New Mexico is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Gross Receipt Tax Permit in Mexico, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in New Mexico.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in New Mexico?
A business must register for a sales tax permit in New Mexico if:- you meet physical or economic nexus within the state and
- you are selling taxable products or providing taxable services to customers in New Mexico
How to Register for a Seller’s Permit in New Mexico?
When applying for a seller’s permit in New Mexico, you can use the online application process on the Taxation & Revenue New Mexico website to complete your sales tax registration.1. Where to Apply for a Seller’s Permit in New Mexico?
The first step to register for a sales tax permit online is to go to Taxpayer Access Point (TAP) and click on “Apply for a New Mexico Business Tax ID” found in the “Businesses” section. You will then be directed to another page that will show you the eligibility criteria for applying for a New Mexico Business Tax ID, as well as the information that you will need to continue. You will then follow the prompts that walk you through your registration process and provide the necessary information. During your registration process, you will create an online login account with the state. Please note that during the registration process, you will be asked questions to determine what type of tax account (i.e., gross receipts tax, withholding tax, compensating tax) you will need. For out-of-state/remote sellers who do not have a physical presence in the state, you will want to make sure you select “Yes” to the question ‘”Will you engage in business in New Mexico?” You will also be required to select the filing frequency for your sales tax returns based on your estimated sales tax liability in the state. Before you submit your registration, you will need to fill out the “Submission Confirmation” section, where you will input your name, your title, and the date of submission. Then hit “Submit.”2. What Information Do You Need to Get a Seller’s Permit in New Mexico?
To successfully acquire a seller’s permit in New Mexico, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in New Mexico:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date With New Mexico (Nexus Start Date), Estimated Sales Tax Liability, Accounting Method (Cash vs. Accural)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in New Mexico?
Registering for a sales tax permit in New Mexico is free, and you won’t need to provide payment details to acquire your permit. A New Mexico sales tax permit does not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.4. What are Other Ways to Register for a Seller’s Permit in New Mexico?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You can also opt to submit the form ACD 31015 Business Tax Registration to any district tax office with an appointment.