Nevada Use Tax – Are You at Risk?

By Guest Blogger Rich Vallari Southwest Sales Tax Solutions (702) 283-4686

Nevada Use Tax may be an area of exposure for individuals and businesses that purchase goods from out of state.

Nevada Use Tax is imposed upon property purchased for storage, use or consumption within Nevada. As a corollary to Nevada Sales Tax, Nevada Use Tax is imposed upon purchases from non-resident vendors and is intended to remove any incentive to avoid Nevada Sales Tax. Businesses and individuals risk exposure when the transaction meets the following criteria:

  1. Tangible property is purchased from a non-resident vendor;
  2. The non-resident vendor does not assess Nevada Use Tax upon the purchase;
  3. The purchaser would have paid Nevada Sales tax had the transaction occurred within state borders.

Consider this example: Your Nevada business purchased a computer from a non-resident vendor in Pennsylvania. The vendor ships the computer to you, billing only for the computer and shipping cost. The non-resident vendor does not charge Nevada Use Tax. In this example, the purchaser becomes and remains liable for Use Tax remittance to Nevada.

Individuals who purchase goods from non-resident vendors are required to remit Nevada Use Tax. Consider your holiday shopping on the Internet. If you purchased from a non-resident vendor, it is likely you were not charged any tax. Legally, any purchase from a non-resident vendor that would be subject to Nevada Sales tax had the item been purchased in Nevada is subject to Nevada Use Tax. You become and remain liable for Use Tax Remittance to the state of Nevada. Questions? Call Rich at (702)