It’s crucial to comprehend the procedure for obtaining a Non-Taxable Transaction Certificate (NTTC) if you own a corporation in New Mexico. If you use an NTTC, you can buy products and services without paying sales tax as long as they’ll be sold again or used to make other products that will be sold. A step-by-step tutorial for applying for an NTTC is provided below:
Determine your eligibility in Step 1
Make sure you meet the requirements before submitting an application for an NTTC. You must have a valid New Mexico tax ID number and be registered with the New Mexico Taxation and Revenue Department (TRD) in order to be eligible. Additionally, you must be involved in a business activity that entails the acquisition, resale, or use of tangible personal property in the manufacture of items for resale.
Step 2: Compile the required paperwork
You must submit specific evidence, including your New Mexico tax ID number, a copy of your most recent New Mexico CRS-1 tax return, and any other supporting documentation, in order to apply for an NTTC. Invoices, purchase orders, or other documents that attest to your business activities could be included.
Step 3: Submit an NTTC application Once you have obtained the required paperwork, you can submit an online NTTC application on the TRD website. You must register for an account and enter your company details, such as your tax ID number and contact information. Additionally, you must upload the necessary paperwork.
Step 4: Await acceptance The TRD will examine your application after you’ve submitted it. Within 10 business days if your application is accepted, you will have your NTTC through email. If your application is turned down, you’ll get a letter outlining the reasons why as well as any appeals procedures.
How long do New Mexico resale certifications remain valid? In New Mexico, resale certificates are good for a year from the date of issuing. To continue using your certificate for tax-exempt purchases, you must renew it every year. In New Mexico, how can I obtain a resale license? You must register with the TRD and get a tax ID number in order to be eligible to apply for a resale license in New Mexico. You can apply for a resale certificate via the TRD website once you have your tax ID number.
What is sales tax 8.25? In New Mexico, the sales tax rate is 8.25 percent. Depending on where you live, this also includes a state tax rate of 5.125% and a municipal tax rate of up to 3.125%. How do you add the 7% sales tax? Just multiply the pre-tax cost by 1.07 to determine the final cost of an item with 7% sales tax. For instance, a product that costs $100 before tax would cost $107 overall with a 7% sales tax.