Nevada imposes various requirements on sellers doing business in the state. We recommend that you go through the items below to help you with the most frequently asked questions concerning sellers and sales and use tax issues.

Procedure for accepting resale certificates. In general, a resale certificate must be substantially in the form prescribed by the Department and include the following information:

• the purchaser's name
• address of purchaser
• purchaser's signature
• the purchaser's permit number or the reason why they don't hold a permit
• description of the general character of the tangible personal property sold by the purchaser in the regular course of business

Procedure for accepting blanket certificates. As a seller you may accept a blanket certificate if your customer repeatedly purchases the same type of property or service for processing or resale. However, blanket certificates may not be used to purchase property or service not covered by a blanket certificate. A blanket certificate must be given to you in advance to cover all orders except those orders that specify otherwise. The blanket certificate must describe the general kind of property to be purchased for resale. A blanket certificate is valid until it is revoked in writing. You must accept a blanket certificate in good faith, in order for it to be valid.

Sales and use tax liability for out-of-state mail order and catalogue retailers.Mail order and telemarketing are not expressly covered by Nevada statute. Like most states, Nevada exempts sales of goods that are shipped to purchasers out of state, whether by seller's trucks, common carrier, or customs broker. Nevada taxes out-of-state mail order and catalogue sellers only if you have physical presence within Nevada. To determine if you have physical presence, ask yourself the following:

• Do I have retail facilities, a warehouse, or any office space in Nevada? Maintaining retail or warehouse facilities will give you physical presence. Also, having an office for employees, even for business activities unrelated to mail order sales, will give you physical presence.
• Do my employees or I enter Nevada for purposes of taking and transmitting orders from Nevada? If your employee or independent contractor goes into Nevada to take or transmit orders, your business may have physical presence in Nevada. However, contracting with a common carrier to deliver mail order goods does not constitute physical presence.
• Do my delivery vehicles frequently enter Nevada for purposes of delivering property? Frequent deliveries in Nevada by your trucks will give you physical presence in Nevada.

Sales tax "bracket system." The bracket system may be followed by sellers in computing the sales tax. The 6.5 percent tax is computed on each dollar and/or fraction of a dollar according to the following table:

Absorbing the tax — using a "no sales tax" advertising strategy to drum up business. In Nevada it is against the law to refund or offer to refund all or any part of the amount collected, or to absorb the amount of sales tax required to be added to the sales price and collected from the purchaser. As a seller, it is also against the law for you to advertise directly or indirectly that you will absorb the sales tax that is required to be added to the sales price.

Claiming refund for excess tax payments. The sales tax on returned goods is credited by excluding from taxable sales the sales price of the returned goods. The excluded amount only includes the sales tax previously collected. You may also file a refund claim with the Department of Taxation within three years from which the overpayment was made.