Collecting sales tax in Kansas can seem daunting, but it’s critical to running a compliant and successful business.
In this Kansas sales tax guide, we’ll explain how to calculate sales tax for counties and cities across the state and explore your eligibility to collect sales tax.
We’ll also introduce a trusted solution to ensure compliance and a streamlined sales tax process from start to finish.
Collecting Kansas Sales Tax from Customers
Let’s explore how you can collect Kansas state sales tax.
Do I Have to Collect Kansas Sales Tax from Customers?
In general, sales tax in Kansas is due on transactions where you:
- Rent, sell, or lease out tangible personal property, including the sale or furnishing of utilities in Kansas;
- Charge for labor services to install, apply, repair, service, alter, or maintain tangible personal property; or
- Sell admissions to amusement and entertainment services, including admissions to state, county, district, and local fairs.
What Creates Sales Tax Nexus in Kansas?
You have sales tax nexus in Kansas if you meet one of the following conditions:
- Economic Nexus: Out-of-state businesses whose gross sales in Kansas exceed $100,000 in the current or previous year.
- Physical Nexus: Businesses with an office or warehouse in Kansas.
- Delivery: Businesses that use company vehicles or contract carriers other than interstate common carriers to deliver products in the state.
- Employees: Businesses that have sales or service representatives in the state.
Learn more about sales tax nexus and when you’re required to collect sales tax.
Do I Have to Collect Sales Tax from Kansas Customers if I Sell on Amazon, Walmart, eBay, or Etsy?
No.
Kansas has a marketplace facilitator law. This means marketplaces like Etsy or Amazon should collect sales tax on behalf of third-party sellers on their platforms. A marketplace facilitator who doesn’t meet the $100,000 threshold doesn’t have to register, collect, and remit Kansas tax.
But if you have sales tax nexus in Kansas, you still need to collect sales tax on your other non-marketplace Kansas sales.
Taxable Products in Kansas
The state of Kansas imposes a sales tax on most tangible personal property and services, including groceries.
Here’s a detailed run-down of the items taxed in Kansas.
Are Groceries Taxable in Kansas?
No, grocery items are not taxable at the state level in Kansas. However, local sales tax can still apply.
Is Clothing Taxable in Kansas?
Yes, clothing is subject to sales tax in Kansas.
Are Digital Products Taxable in Kansas?
Kansas doesn’t usually tax electronic downloads of digital products, like movies, music, or videos.
Is Software-as-a-Service (SaaS) Taxable in Kansas?
Kansas does not tax a transaction involving obtaining remote access to external computer software and equipment via the internet or other electronic means when the user does not have control or possessory rights to the software or equipment.
SaaS is a service that provides electronic access to computer software or equipment, where the user does not have control over it. For this reason, SaaS is exempt from sales tax.
Are Services Taxable in Kansas?
Kansas sales tax applies only to services such as installing, applying, altering, repairing, servicing, or maintaining tangible personal property.
Tax-Exempt Items
Some items that enjoy sales tax exemption in Kansas are:
- Ingredients or component parts, like paper and ink for publishing newspapers, that are part of a finished product to be sold to the final consumer.
- Aircraft sales, parts, and repair services for aircraft used in interstate or foreign commerce.
- Drugs and pharmaceuticals sold to veterinarians.
- Medical supplies and durable medical equipment purchased by a nonprofit skilled nursing home.
- Machinery and equipment for farming.
- Seeds, chemicals, and services purchased to prevent soil erosion on agricultural land.
How to Register for a Kansas Sales Tax Permit
You can register for a sales tax permit online via the Department of Revenue website. You can also register offline by submitting the Business Tax Application.
Learn how to register for a seller’s permit in every US state.
Do I Need a Kansas Sales Tax License if I’m Only a Wholesaler?
Sales to wholesalers and other non-final consumers are exempt from sales tax but must be supported by a valid exemption certificate.
Do I Need a Kansas Seller’s Permit if I Only Sell Temporarily in the State?
Yes. Kansas requires anyone who sells taxable products and services to register, collect, and submit sales tax, even if it’s just once a year.
How to Collect Sales Tax in Kansas
Kansas is a destination-based sales tax sourcing state.
This means that when you make a taxable retail sale to a customer in Kansas, you must apply the sales tax rate based on the buyer’s shipping address.
Should You Collect Sales Tax on Shipping Charges in Kansas?
Kansas imposes a sales tax on the gross receipts from the sale of tangible personal property and enumerated services. Separately stated delivery charges, such as shipping, are excluded from the sales price and exempt from sales tax.
Find out more about sales tax on shipping in every state in the United States.
How to File and Pay Sales Tax in Kansas
There are multiple ways to file and pay sales tax in Kansas:
- File online: Use the Kansas Department of Revenue Customer Service Center to file single and multiple jurisdiction sales and use tax returns.
- File by mail: You can use Form ST-36 for multiple jurisdiction filers and file and pay through the mail.
- Let Zamp handle your Kansas sales tax filing and remittance so you won’t have to deal with sales tax returns ever again!
Explore how you can file and pay sales tax in other US states.
