Who Needs to Register?

You must register and collect sales tax in Minnesota if you have a taxable presence or nexus in Minnesota, even if you are an out-of-state retailer or marketplace provider.

You have taxable presence in Minnesota if your business does any of the following:

• Maintains a physical location in Minnesota (office, warehouse, or distribution, sales, or sample room)
• Sells products to customers in Minnesota, using the internet, mail order, or telephone, without having a physical presence in the state and does not meet the Small Seller Exemption
• Has 200 or more retail sales shipped to Minnesota over a period of 12 consecutive months
• Has retail sales that total more than $100,000 shipped into Minnesota over a period of 12 consecutive months
• Has an employee, representative, agent, or independent contractor that does work on behalf of the retailer in Minnesota
• Facilitates the sale of taxable goods or services to customers in Minnesota on behalf of a business
• Delivers items into Minnesota in your own vehicles
• Provides taxable services in Minnesota
• Owns, leases, or maintains real or tangible personal property in Minnesota
• Keeps inventory in a fulfillment center in Minnesota
• Is an affiliate of a Minnesota retailer that promotes or provides other services to you and your business and the retailer are related parties
• Enters into an agreement with a Minnesota resident for a commission or similar consideration and directly or indirectly refers potential buyers to the seller through website links or otherwise
• Conducts business activity in Minnesota on at least four days during a 12-month period. See Revenue Notice #19-03: Physical Presence Nexus Standards. 

Small Seller Exception

The Small Seller Exception requires remote sellers to collect and remit sales tax if their total sales over the prior 12-month period total either:

• 200 or more retail sales shipped to Minnesota
• More than $100,000 in retail sales shipped to Minnesota

A retail sale is one sales transaction. For example, one sale into Minnesota may contain 10 items for one customer. That transaction counts as one retail sale.

Note: When calculating this exception, do not include sales where the purchaser is buying for resale. The purchaser must give you a completed, Form ST3, Certificate of Exemption claiming a resale exemption.

What if I do not make taxable sales?

If you sell only nontaxable items, you do not need to register for a sales tax account. However, if you make purchases subject to tax, you may need to register to pay use tax. See Use Tax for Businesses.