Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax (Page 18 of 42) in pdf

services, and the rental of hotel rooms and vehicles

IFT

ERTIFICATES

are also subject to a Kansas excise tax (see Other

Kansas Taxes herein). Each tax is figured as a

Gift certificates are not subject to sales tax. The sales

tax will be charged and collected when the gift certificate

percentage of the selling price, and should be

is later redeemed for store merchandise.

separately stated.

A hotel located in Anytown, Kansas

IFTS AND

REMIUMS

charges $68 for a room. Since a 5%

When you donate, give away, or otherwise personally

transient guest tax is in effect in Anytown,

use merchandise from your inventory, you become the

the bill for the room will show both taxes:

final consumer and are required to pay sales tax on your

Cost of room .................................

$ 68.00

cost for the item, not its retail price. The sample in this

5% transient guest tax ..................

3.40

publication illustrates how to report and pay sales tax

8% sales tax .................................

5.44

on “Merchandise Consumed” by you.

Total ..............................................

$ 76.84

RADE

INS

-S

TATE

ALES

A trade-in involves accepting a used product in

Kansas sales tax law applies only within the

exchange for credit against the purchase of a new

boundaries of Kansas. When goods or merchandise

product. Sales tax is charged on the net price — the

are shipped or delivered outside of Kansas (and not

price after the trade-in allowance. Example:

returned to a point in Kansas), Kansas sales tax is not

due. Out-of-state delivery may be made by the seller,

New Car price .............................

$16,000.00

a common carrier, or through the mail.

Trade-in allowance .....................

- 6,300.00

Trade difference ..........................

$ 9,700.00

7.3% sales tax .............................

_ 708.10

Since these sales are a deduction on your sales tax

Customer payment .....................

$10,408.10

return, your books and records must show the

merchandise was delivered outside Kansas. Acceptable

NSTALLMENT

ALES

proof of an out-of-state sale is a:

Cash basis retailers will report and pay the sales tax

• Waybill or bill of lading showing delivery to another

due on credit, conditional or installment sales in the filing

state,

period the money is collected. Accrual basis retailers

• Post office, insurance, or registry receipt,

will report the sales tax on the full amount of the sale in

• Trip sheet signed by the seller’s delivery agent,

the period in which the sale was made, regardless of

showing the address and signature of the person

when payment is received.

outside Kansas who received the merchandise.

NTERNET

ALES

When goods or merchandise are delivered to a buyer

in Kansas, Kansas sales tax is due even though the

The Internet is a method of attracting and transacting

buyer may later transport the property out of Kansas.

retail business. If the retailer and buyer are in Kansas,

Kansas sales tax is due on a retail sale (including

NOTE: If you deliver goods to another state or have a physical

shipping and handling charges), whether that sale is

presence or “nexus” in another state, you may be required

made in person, by phone, fax or the Internet. By

to register to collect that state’s sales or use tax. See What

destination-sourcing rules, the rate of tax charged on

is Nexus? herein.

the sale will be the rate where the customer takes delivery.

When the buyer, or his agent, takes possession of

When the retailer is in Kansas and the buyer in

property outside Kansas, the sale is not subject to the

another state, Kansas sales tax is not due, but a use tax

Kansas sales tax, but may be subject to the other state’s

may be (see Out-of-State Sales herein). Any use tax

use tax.

due to the other state is usually the responsibility of the

consumer in that state, unless the retailer has established

A Kansas retailer receives a phone order

a physical presence “nexus,” or voluntarily collects tax

for a shirt from a resident of another state,

for the other state. (Kansas retailers with nexus in another

and mails it to the out-of-state customer.

state may be obligated to collect that state’s use tax.)

Kansas sales tax is not due on this sale.

However, the customer may owe use tax on this purchase

An isolated or occasional sale, as defined above,

to his or her home state.

transacted over the Internet would not be subject to

Kansas sales tax.

Sales to nonresidents are taxable if possession is

taken in Kansas, with two exceptions: 1) Motor vehicles

THER

ANSAS

AXES

sold to a bona fide resident of another state who will

title and register the vehicle in the other state – see

Some sales are subject not only to the Kansas

page 4; and 2) sales to nonresident exempt buyers

Retailers’ Sales tax, but also to another Kansas tax or

discussed above.

fee. For example, tire sales, dry cleaning and laundry

Form Pub. Ks-1510 - Kansas Sales Tax And Compensating Use Tax Page 18

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