You will be obliged to collect and submit sales tax on all taxable sales conducted inside the state of New Mexico once you have gotten your seller’s permit. New Mexico’s current sales tax rate is 5.125%, but individual local governments may impose higher rates. If your company is subject to any additional sales tax rates, it is crucial to check with your local government.
In New Mexico, some items are excluded from paying sales tax. These products include food, prescription medications, specific medical devices, and specific agricultural goods. Additionally, some services including professional and health care services are free from sales tax.
Resale certificates from other states are accepted in New Mexico, enabling companies to buy products without paying sales tax if they intend to resell them. You must have a valid resale certificate and be registered to collect sales tax in your home state in order to be eligible for an out-of-state resale certificate.
A sales tax exemption can be established with the help of a document called an NTTC, or Non-Taxable Transaction Certificate. If you are selling things to a non-profit organization or selling items outside of your state where you are not obligated to collect sales tax, you might need to do this.
In conclusion, you must obtain a seller’s permit, collect, and remit sales tax on all taxable sales if you are selling tangible products online in New Mexico. Sales tax exemptions may apply to specific goods and services, and in some cases, out-of-state resale certificates and NTTCs may be required. To prevent any potential legal problems, it’s critical to be educated on the most recent New Mexico sales tax regulations.