Gross Receipts Tax on Out of State Services in NM?
I have a technology consulting company and we have a new client from out of state (out of country)asking for a quote on a report on aspects of a specific technology. Do still need to charge them New Mexico Gross receipts tax? Where (important) is it written that I do (or do not) have to pay or charge the 6.75%?
- Bostonian In MOLv 71 decade agoFavorite Answer
Gross receipts taxes are very different from sales taxes. It's assessed on you based upon the gross receipts of your business. Where the money originates from is generally irrelevant, since the customer is not the one actually paying the tax as they do with sales taxes. Most businesses pass the tax on to their customers, and some even itemize it on invoices and receipts.
MN does grant an Out-of-State Services Exemption in certain cases. However the provisioning of goods out-of-state is still subject to the tax.
See FY-105 for more information: http://www.tax.state.nm.us/pubs/fyi105.pdf