Minnesota is a destination-based state (sales are taxed where the buyer is located).
To file your return and pay sales tax:
The general sales tax rate is 6.875%. Additional local taxes apply. Local taxes imposed generally range from .05% to 6%. Restaurant sales are subject to specialized food and beverage local taxes in some jurisdictions.
Groceries for home consumption are exempt from sales tax, while candy, soft drinks, and prepared foods are taxable.
Business activities that establish a minimum tax connection to the state include:
Online activities that establish nexus in Minnesota include:
Find more information about nexus in Minnesota.
Due dates are as follows:
To collect taxes in Minnesota a business must register with the Department of Revenue and apply for a MN tax ID.
After applying you'll receive a confirmation email with your MN tax ID.
Failure to pay - If you don't pay your tax on time, the following penalties apply:
Failure to file - Add an additional 5% to the above penalty if you also don’t file your return on time.
Interest is figured on the total tax plus penalty at 4% (adjusted annually) from the due date until the date the total is paid.