How To Register For A Kentucky Sales Tax Permit

When starting a business in Kentucky, there are several registrations to take care of. Perhaps one of the most common is the Kentucky sales tax permit, which is sometimes referred to as a retailer certificate, seller’s permit, sales tax permit, sales and use tax number, or sales tax registration.

The sales tax permit is obtained through the Kentucky Department of Revenue as part of the Kentucky Tax Registration Application. In addition to registering for sales and use tax, a business can also register for employers’ withholding tax and various other registrations.

Keep reading to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what you need to do for reporting.

Who needs a sales tax permit in Kentucky?

A business must register for a sales tax permit in Kentucky when:

• A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
• Occasionally selling items at craft shows, fairs, seminars, conventions, etc. in Kentucky
• Hiring employees in Kentucky (including remote employees, sales representatives, or agents)
• Renting or leasing tangible or digital property
• An online business located in Kentucky is selling taxable products to Kentucky residents
• A remote seller sells over $100,000 in physical goods or has over 200 transactions annually to residents in Kentucky

What products and services are taxable in Kentucky?

Physical Products

There are a few exceptions, but almost all physical products are taxable when sold at retail in Kentucky. Common examples include:

• Sale of tangible personal property – General merchandise like vehicles, furniture, appliances, and clothing
• Lease or rentals of tangible personal property
• Qualifying food, prescriptions, and medical appliances

Prescription drugs, some medical devices, and food/food items (with the exception of candy, soft drinks, and prepared foods) are tax-exempt.

Digital Products

Digital products are taxable in Kentucky.

Services

Most services aren’t taxable in Kentucky, however, there are a few exceptions, some of which include:

• Admissions (concerts, sporting events, etc.)
• Memberships (gym, golf courses, etc.)
• Short-term lodging
• Installation of replacement parts for tangible property (auto repair shop, computer repair, furniture repair, etc.)
• Production, fabrication, processing, or printing of tangible property (sign making, window tinting, embroidery, screen printing, engraving, etc.)
• Landscaping services
• Janitorial services
• Small animal veterinary services
• Pet care services (pet grooming or pet boarding)
• Dry cleaners
• Indoor skin tanning services

How to register for a sales tax permit in Kentucky

A sales tax permit can be obtained by filling out the Kentucky Tax Registration Application online through the Kentucky Business One Stop or by mailing in the 10A100 Form.

Information needed to register includes:

• The effective date of the business starting, hiring employees or selling products, or offering taxable services
• Legal business name
• Doing Business As Name (DBA)
• Federal Employer Identification Number (FEIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
• Kentucky Commonwealth Business Identifier
• Secretary of State of State Organization Number
• Primary business location address and phone number
• Business operations (home-based, web-based, office/store-based, transient)
• Accounting period (calendar year or fiscal year)
• Accounting method
• Type of business entity: sole proprietorship, general partnership, Limited Liability Partnership, corporation, Limited Liability Company (LLC)
• Name, social security number, driver’s license number, and addresses of owners/officers/members
• Description of what products or services are being sold
• North American Industry Classification System (NAICS) code
• Estimated monthly sales tax collected
• Employee information

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax, which it then sends to the Kentucky Department of Revenue.

How much is sales tax in Kentucky?

The statewide sales tax rate in Kentucky is 6%. There are no additional local, municipal, city, or county taxes.

When are Kentucky sales tax returns due?

The Department of Revenue will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, semiannually, or annually. Generally, a business selling over $1,200 monthly in taxable sales will file monthly.

Filings are due on the 20 th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Kentucky Sales Tax Permit FAQs

How much does a Kentucky sales tax permit cost?

There is no cost for a sales tax permit in Kentucky.