Even small New Mexico businesses need a Seller’s Permit if selling retail or wholesale. States require permits so businesses collect and remit sales taxes. Failure to do so may result in fines and back taxes.
You must register if selling or leasing taxable goods or services. The gross receipts tax differs from a sales tax. Sales tax is added to the selling price, while the gross receipts tax is on the transaction itself.
To apply, register with New Mexico’s Taxation and Revenue Department. Most businesses operating or selling in New Mexico need a resale certificate annually. Even online businesses shipping to residents must collect sales tax, so the certificate allows this.
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You can register online for a seller’s permit by providing information like name, address, EIN, projected sales, products sold, etc.
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It typically takes 7-10 days to receive a permit after submitting the application.
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A seller’s permit allows collecting and remitting sales tax, while a resale certificate enables purchasing items tax-free for reselling.
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While a seller’s permit is necessary to legally do business in a state, a resale certificate is only needed if making tax-exempt purchases from suppliers/wholesalers.