You must have a CRS (Combined Reporting System) number if you own a business in New Mexico. You can file and pay taxes using this number, which is used to identify your firm for tax purposes. How to obtain a CRS number in New Mexico is as follows:
The first step is to register your company with the Taxation and Revenue Department of New Mexico. You can submit this via mail using the Business Tax Application (Form ACD-31015) or online by visiting their website.
Step 3: You will receive your CRS number after your application has been reviewed and accepted. This number can be used for both online and postal tax filing and payment.
It’s crucial to remember that some services are excluded from the sales tax in New Mexico. These include of professional services like accountancy and law as well as healthcare and education. Additionally, several items—including food sold for domestic consumption, prescription pharmaceuticals, and specific farming equipment—are exempt from gross receipts tax.
Use a New Mexico nontaxable transaction certificate (NTTC) to avoid paying sales tax when buying items to resell. The vendor is required to produce this certificate, which must be shown at the time of purchase. The buyer is then responsible for paying gross receipts tax on the sale of the goods, therefore the seller does not receive sales tax from them.
It’s crucial to note that New Mexico does indeed impose a sales and use tax. The sale, rental, or leasing of tangible personal property in the state is subject to this tax. Items bought outside of New Mexico and utilized inside the state are subject to the use tax. You are in charge of gathering and sending sales and use tax to the state if you operate a business.
Finally, any business owner in New Mexico must take the proper steps to acquire a CRS number. It’s critical to comprehend which goods and services are exempt from taxes as well as how to employ NTTCs when reselling goods. Additionally, by being aware of the state’s sales and use taxes, you can make sure that your tax collection and submission procedures are correct. Visit the New Mexico Taxation and Revenue Department’s website or get in touch with them directly for further details and assistance.