How to Get Kansas Sales Tax Permit | A Comprehensive Guide


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Kansas Sales Tax Permit

Have you ever wondered what a sales tax permit is in Kansas? If you don’t, then we will guide you through it. In Kansas, a sales tax permit, also known as a seller’s permit, is a legal document that allows businesses, specifically Kansas LLC, to collect and remit sales tax to the Kansas government. This permit ensures businesses operate legally and have the necessary permissions to conduct sales within a particular state. Kansas has its own rules and regulations surrounding sales tax permits. Business owners must familiarize themselves with the requirements and processes to comply with the law.

In this comprehensive guide, Webinarcare Editorial Team will walk you through everything you need to know about obtaining and maintaining Kansas Sales Tax Permit. From understanding the basics of sales tax to the intricacies of the application process, we have got you covered. You must be guided by all the factors gathered in this article.

What is a Sales Tax Permit?

A sales tax permit is Kansas-issued license that allows businesses to collect and remit sales tax on the goods and services they sell. This permit ensures Kansas businesses operate legally and have the necessary permissions to conduct sales within a particular state. In Kansas, a sales tax permit is required for businesses that sell taxable goods or services and are required to collect sales tax from their customers.

Who Needs a Sales Tax Permit?

Not all businesses need a sales tax permit. Typically, businesses that sell tangible personal property or taxable services to customers within Kansas require a sales tax permit. This includes brick-and-mortar stores, online retailers, and service providers. Kansas may also require sales tax permits for businesses that sell certain types of products or services, such as alcohol or tobacco. If you plan to start a bakery business in Kansas, you typically need a sales tax permit to collect and remit sales tax on the items you sell.

If your business operates in multiple states or forms a foreign LLC in Kansas, you may need to obtain a sales tax permit for each state with a sales tax nexus. A sales tax nexus is a connection or presence a business has within a state that requires them to collect and remit sales tax. Factors that can create a nexus include the following:

  • Physical location
  • Employees
  • Inventory within a state

Obtaining a sales tax permit in Kansas is not just about complying with regulations, but about seizing the opportunity to grow and thrive in the market. To start an LLC must be a gateway to establish a legitimate business presence and to build trust with customers. Embrace this essential step, for it paves the path towards success and prosperity.

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How to Get a Sales Tax Permit in Kansas

The process for obtaining a sales tax permit varies from state to state. Generally, Kansas businesses must apply through the Kansas Department of Revenue. The following steps provide an overview of the application process:

Step 1: Determine If You Need a Sales Tax Permit 

Before applying, determine if your Kansas business needs a sales tax permit based on the goods or services you sell and where you operate.

Most Kansas businesses that sell tangible goods or services must have a sales tax permit. This includes:

  • Retailers – businesses that sell goods directly to consumers, such as clothing stores, grocery stores, and electronics stores.
  • Service Providers – businesses that provide services, such as hair salons, auto repair shops, and landscaping companies.
  • Wholesalers – businesses that sell goods to other businesses, such as distributors and manufacturers.
  • Online Sellers – businesses that sell goods or services online, including Kansas E-commerce and online marketplaces.

Step 2: Register Your Kansas Business

Register your business in Kansas if you still need to. This may involve obtaining an Employer Identification Number (EIN) in Kansas from the Internal Revenue Service and registering your business name with the Kansas Secretary of State. 

Your Kansas business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Kansas Business Name Search for a proper Kansas business name. You can also check the availability of your desired business name by searching the Kansas Secretary of State Business Entity‘s website.

In obtaining an EIN, it can be done through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Complete the registration for a legal Kansas business if you plan to sell tangible goods. 

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Step 3: Gather The Necessary Information

The next step is to collect the required information for the Kansas sales tax permit application. To obtain a sales tax permit in Kansas, you will need to gather the following necessary information:

  1. Business Details: Provide the legal name, mailing address, and contact information of your business, including your Kansas DBA (Doing Business As) names.
  2. Entity Type: Indicate whether your business is a sole proprietorship, partnership, corporation, LLC, or legal entity.
  3. EIN/SSN: Have your Employer Identification Number (EIN) or Social Security Number (SSN) ready. This identification is required to associate the sales tax permit with your business.
  4. Purpose of Permit: Explain the nature of your business activities, such as retail sales, wholesale, manufacturing, or service, to determine the appropriate sales tax category.
  5. Product/Service Description: Provide a brief description of the goods or services your business offers, including any unique details that may impact the sales tax requirements.
  6. Nexus Information: Identify if your business has a physical presence or nexus in Kansas, such as a brick-and-mortar location, employees, or inventory storage.
  7. Estimated Sales: Estimate your expected monthly or annual sales volume in Kansas to determine the appropriate tax registration and reporting requirements.
  8. Previous Registration: If you are already registered for sales tax in another state, provide details to determine if any reciprocal agreements or exemptions apply.
  9. Supporting Documents: Some states may require additional documentation, such as a copy of your business license, federal tax returns, or a certificate of authority.
  10. Fee Payment: Be prepared to pay the required fee for obtaining a sales tax permit in Kansas.

It’s important to note the exact requirements and processes in Kansas. It is recommended to visit the official website of the Kansas Department of Revenue or consult with a tax professional for accurate and up-to-date information.

Step 4: Complete The Application

Fill out the sales tax permit application form for Kansas, either online or by paper. Be prepared to answer questions about your business operations, products, and services. You can register your Kansas sales tax permit in Kansas Department of Revenue.

Step 5: Pay Any Required Fees

In Kansas, the state permit may charge a fee for obtaining a sales tax permit. Be prepared to pay this fee when submitting your application. Usually, it costs $0 (Free). 

Step 6: Submit The Application

Submit your completed application, along with the required fee of $0 (Free), to the Kansas Department of Revenue.

Step 7: Receive Your Permit

Once your application is approved, you will receive your sales tax permit. This may be a physical document or an electronic certificate you can print. 

How to Maintain a Sales Tax Permit

After obtaining a sales tax permit, Kansas businesses must maintain compliance with Kansas sales tax laws. This typically involves the following steps:

  • Collect Sales Tax: Collect sales tax from customers on taxable goods and services. Be sure to charge the correct sales tax rate based on your and your customer’s locations. The sales tax rate in Kansas is 6.50%. 
  • Keep Accurate Records: Maintained detailed records of all sales transactions, including the amount of sales tax collected. This information will be required when filing your sales tax returns. Hire a certified public accountant (CPA) to keep track of records. 
  • File Sales Tax Returns: File sales tax returns with Kansas, typically monthly, quarterly, or annually, depending on your sales volume and Kansas requirements. Be sure to remit the sales tax collected during the reporting period.
  • Renew your Permit: Kansas requires businesses to renew their sales tax permits periodically. Know your state’s renewal requirements and complete the necessary steps to maintain your permit.

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Penalties for Non-Compliance

Failure to obtain or maintain a sales tax permit can seriously affect a business. Penalties for non-compliance can include fines, penalties, interest charges, and even the revocation of your business license. Additionally, Kansas businesses that fail to collect and remit the Kansas sales tax may be held personally liable for the unpaid taxes.

Do I Need a Sales Tax Permit If I Only Sell Online?

You likely need a sales tax permit if you sell taxable goods or services online and have a sales tax nexus in Kansas. To have a Home-Based Business in Kansas, you must still file and maintain a sales tax permit. 

How Long Does Obtaining a Sales Tax Permit Take?

The processing time for sales tax permit applications takes time. In Kansas, they may issue permits within a few days, while others may take several weeks. Be sure to apply well in advance of when you plan to start selling taxable goods or services.

Can I Have Multiple Sales Tax Permits?

Businesses that operate in multiple states or sell different types of products may need multiple sales tax permits. Be sure to research the specific requirements for each state and product type. Having a foreign LLC is not quite easy since you still need to hire a Registered Agent, file for the Articles of Organization of the state you wish to operate your business, and also, you need to have multiple sales tax permits. 

How Much Does a Sales Tax Permit Cost?

The costs and requirements for obtaining a sales tax permit vary depending on the state. To find accurate information about the cost of a sales tax permit in Kansas, you can visit the Kansas Department of Revenue’s website or consult with a tax professional or accountant familiar with your state’s regulations. They can provide the most up-to-date information on the costs and requirements for obtaining a sales tax permit in Kansas.

FAQs

How do I apply for a sales tax permit in Kansas?
You can apply for a sales tax permit in Kansas online through the Kansas Department of Revenue.
Are there any fees for obtaining a sales tax permit in Kansas?
No, there is no fee for obtaining a sales tax permit in Kansas.
How long will it take to receive my sales tax permit in Kansas?
Typically, it takes about 10 business days to receive your sales tax permit in Kansas.
Do I need a sales tax permit in Kansas if I only plan to sell a few items?
Yes, any person or business that sells tangible personal property or taxable services in Kansas must have a sales tax permit.
Can I use my sales tax permit from another state in Kansas?
No, you will need to obtain a separate sales tax permit for Kansas.
Do I need to renew my sales tax permit in Kansas?
Yes, your sales tax permit must be renewed every two years in Kansas.
If I have more than one business location in Kansas, do I need a separate sales tax permit for each location?
Yes, you will need a separate sales tax permit for each business location.
What is required to apply for a sales tax permit in Kansas?
You will need to provide your business name, address, contact information, type of business, and federal tax identification number.
Can I apply for a sales tax permit in Kansas if I do not have a federal tax identification number?
No, you must have a federal tax identification number to apply for a sales tax permit in Kansas.
Will I be required to collect Kansas sales tax on online sales if I am located outside the state?
Yes, if you make sales to customers in Kansas, you will be required to collect sales tax regardless of your location.
What is the sales tax rate in Kansas?
The sales tax rate in Kansas varies by city and county, but the state rate is 6.5%.
Can I register for a sales tax permit in Kansas over the phone?
No, you must register for a sales tax permit in Kansas online or through the mail.
Do I need to file a tax return in Kansas if I do not owe any sales tax?
Yes, you are required to file a zero return in Kansas.
Is there a penalty for not having a sales tax permit in Kansas?
Yes, depending on the circumstances, penalties may include fines, interest, or criminal charges.
What should I do if I lose my sales tax permit in Kansas?
You can request a duplicate sales tax permit from the Kansas Department of Revenue.
Can I request a sales tax exemption for my business in Kansas?
Yes, certain businesses may be eligible for sales tax exemptions in Kansas.
Is a sales tax permit required for non-profit organizations in Kansas?
Yes, non-profit organizations are also required to have a sales tax permit in Kansas.
What is the definition of a “taxable service” in Kansas?
A “taxable service” refers to any service that is subject to sales tax in Kansas.
What should I do if my business moves to a new location in Kansas?
You will need to update your sales tax permit with the new business location address.
Who should I contact if I have questions about obtaining a sales tax permit in Kansas?
Contact the Kansas Department of Revenue for questions about sales tax permits in Kansas.
How will I know if my application for a sales tax permit in Kansas has been approved?
You will receive notification via mail or email if your application for a sales tax permit in Kansas has been approved
Can I write off sales tax on my taxes if I have a Kansas sales tax permit?
Yes, sales tax paid may be deducted on your federal income tax return.
Can I use a resale or exemption certificate for purchases in Kansas with my sales tax permit?
Yes, you can use a resale or exemption certificate for purchases in Kansas with your sales tax permit.
Are there any other taxes besides sales tax that I should be aware of in Kansas?
Yes, Kansas also has state income tax and property tax.
Can I cancel my sales tax permit in Kansas?
Yes, you can cancel your sales tax permit in Kansas if you no longer sell taxable items or services in the state.
How do I amend or update my sales tax permit in Kansas if things change with my business?
You can update your sales tax permit in Kansas by submitting an application or using the e-file system on the Kansas Department of Revenue’s website.
How will I know when my sales tax permit needs to be renewed in Kansas?
The Kansas Department of Revenue will send notification of renewal.
Can I use my sales tax permit for wholesale purchases in Kansas?
Yes, you can use your sales tax permit to claim a sales tax exemption for wholesale purchases in Kansas.
Will I need a separate sales tax permit for online sales in Kansas?
No, your sales tax permit allows you to sell both online and in-person in Kansas.
What is a sales tax permit?
A sales tax permit is a document that allows individuals or businesses to collect and remit sales tax to the Kansas Department of Revenue.
When is a sales tax permit required in Kansas?
A sales tax permit is required for any individual or business that sells taxable tangible personal property or provides taxable services in Kansas.
How do I obtain a sales tax permit in Kansas?
You can obtain a sales tax permit by completing an online application or by filling out a paper application and submitting it to the Kansas Department of Revenue.
Do I have to pay a fee to register for a sales tax permit in Kansas?
No, there is no fee to register for a sales tax permit in Kansas.
Is a sales tax permit the same as a business license in Kansas?
No, a sales tax permit is not the same as a business license in Kansas. A sales tax permit is specifically for collecting and remitting sales tax, while a business license is required for establishing and operating a business in the state of Kansas.
What is the penalty for operating without a sales tax permit in Kansas?
Operating without a sales tax permit in Kansas can result in penalties and fines, and can also lead to legal action against the individual or business.
Is a sales tax permit transferable in Kansas?
No, a sales tax permit is not transferable in Kansas. If you sell your business or transfer ownership, the new owners must apply for a new sales tax permit.
Can I use my sales tax permit in other states?
No, a Kansas sales tax permit is only valid within the state of Kansas. If you have a sales tax obligation in other states, you must register with those states separately.
How often do I need to renew my sales tax permit in Kansas?
A sales tax permit in Kansas does not expire unless the business becomes inactive. If your business has been inactive for any continuous twelve-month period, your sales tax permit will be automatically terminated.
What do I need to do if I can’t locate my sales tax permit in Kansas?
If you can’t locate your sales tax permit in Kansas, you can contact the Kansas Department of Revenue and request a duplicate copy.
Can an individual apply for a sales tax permit, or is it only for businesses?
Individuals can also apply for a sales tax permit in Kansas if they sell taxable items or services.
Can I keep and report my sales tax based on the fiscal year, not the calendar year?
No, sales tax in Kansas is always reported on a calendar year basis.
Where can I find information on what products and services are subject to sales tax in Kansas?
You can find information on what products and services are subject to sales tax in Kansas by visiting the Kansas Department of Revenue’s website.
Do I need a sales tax permit if I only sell my products at craft fairs and farmer’s markets in Kansas?
Yes, even if you only sell your products at craft fairs and farmer’s markets, you are still required to have a sales tax permit in Kansas.
Can I apply for a sales tax permit online in Kansas?
Yes, you can apply for a sales tax permit online through the Kansas Department of Revenue’s website.
How long does it take to receive a sales tax permit in Kansas after submitting an application?
It generally takes 10 days to receive a sales tax permit in Kansas after you have submitted an application.
Can I reactivate my terminated sales tax permit in Kansas?
Yes, you can reactivate your terminated sales tax permit in Kansas by contacting the Kansas Department of Revenue.
Is a sales tax permit required for businesses that provide services only and do not sell products?
Yes, a sales tax permit is required for businesses that provide taxable services even if they do not sell products.
Can I use my social security number instead of an EIN number when registering for a sales tax permit in Kansas?
Yes, you can use your social security number instead of an EIN number when registering for a sales tax permit in Kansas if you do not have one.
How long does it take for my sales tax permit to be processed in Kansas if I apply by mail?
If you apply for a sales tax permit by mail, it can take 2-3 weeks to process your application in Kansas.
If I purchase a business, can I assume their existing sales tax permit in Kansas?
No, you cannot assume an existing sales tax permit in Kansas if you purchase a business. You must apply for a new sales tax permit in your own name.
If I sell products online, do I need a sales tax permit in Kansas?
Yes, if you sell products online and those products are shipped to Kansas, you are required to have a sales tax permit in Kansas.
Can I register for a sales tax permit in Kansas with a PO box address?
Yes, you can register for a sales tax permit in Kansas with a PO box address, but you must also provide a physical address where your products or services are sold or performed.
What do I do with the sales tax I collect in Kansas?
You must remit the sales tax you collect in Kansas to the Kansas Department of Revenue on a regular basis.
What is the penalty for late payment of sales tax in Kansas?
The penalty for late payment of sales tax in Kansas is 1% per month of the unpaid tax, up to a maximum of 24%.
How do I change my business name on my sales tax permit in Kansas?
You can change your business name on your sales tax permit in Kansas by submitting a request in writing to the Kansas Department of Revenue.
Do sales made to the federal government need to be reported on my sales tax return in Kansas?
No, sales made to the federal government do not need to be reported on your sales tax return in Kansas.
What do I do if I move my business to a new location in Kansas?
If you move your business to a new location in Kansas, you must notify the Kansas Department of Revenue and update your sales tax permit with your new address.
How long are sales and use tax records kept in Kansas?
Sales and use tax records are kept for a minimum of three years in Kansas.

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Conclusion

Obtaining and maintaining a sales tax permit is crucial to running a compliant and successful business. By understanding the requirements and processes in Kansas, you can ensure that your business collects and remits sales tax correctly and avoids any penalties for non-compliance. Consulting with a tax professional or Kansas attorney is recommended to ensure that your Kansas business meets all necessary sales tax requirements.

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