Kentucky Multistate Taxation Commission Amnesty Program
Summary of the Amazon sellers required to collect and remit in FBA states and the MTC and the program and non FBA states
Once you received your application from the MTC that is signed by the state you have a 30-day window to apply for a sales tax permit in each state.
What is Nexus and Why is it Important in Kentucky?
If you have nexus or a presence in the state you will have to register to collect and remit sales tax. There is a different standard for sales tax nexus vs income tax nexus. Some states will separate the two, and some states will lump the two together. This comes up when you register for a sales tax permit and you may have to file a corporate tax return and pay state corporate income taxes.
Kentucky considers the following activities to create nexus:
Here is a list of activities that create nexus in Kentucky:
Kentucky considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- Ownership of property in the state.
- A warehouse or inventory stored in the state
- Hiring Kentucky employee, or has an outside employee working in Kentucky
- Regularly engages in delivery of products to Kentucky
- Stock/Inventory in third-party warehouse
Go here to see full details on what constitutes sales tax nexus in Kentucky.
Where to Apply for a Sales Tax Permit in Kentucky
You can register online at the Kentucky One Stop Business Portal or register by mail by mailing the Kentucky Tax Registration to:
Department of Revenue, Division of Sales and Use Tax
Kentucky Tax Registration
Station 67
PO Box 181
Frankfort, KY 40602-0181
What is a Required to Register for a Sales Tax Permit in Kentucky
- Personal identification info (SSN, address, etc.) If you do not have a SSN, you must apply with a paper application.
- Business identification info (EIN, address, etc.). Business entity type
- Location Information
- Date started doing business in Kentucky
Kentucky State Fee to Register for a Sales Tax Permit
There is no fees for registering in Kentucky.
Kentucky State Sales Tax Rates
The Kentucky state tax rate is 6.00%. There are no Local taxes.
If you do in fact have nexus in Kentucky, it is especially important to file and pay for your sales tax on-time; Kentucky charges a penalty of 2% of total tax due for each 30 days a tax return or report is late, up to a maximum of 20% of total tax due.
Registering for a Sales Tax Permit in Kentucky
Sellers with sales tax nexus in Kentucky must first apply for a sales tax permit. You must legally have a license to collect sales tax. Collecting sales tax without a license is illegal.
Here are the critical factors that come into applying for a sales tax permit in Kentucky:
- Knowing the process to file online vs mailing in a PDF (if available, especially for sellers without a SSN).
- Using the correct sales start date
- Knowing the accurate past sales tax amount
- Filing in the correct taxation type of your business
- Applying for the right type of permit in the state
- Setting up a tax account to remit sales tax
- Understanding your remitting requirements
- Plus many more issues may come up
Let Sales Tax System apply for your sales tax permit in Kentucky so you can focus on operating your Amazon FBA business.
Learn more and register for our Sales Tax System Membership.
Learn more how Sales Tax System Members will save $100 per state with our MTC VDA service. $100 Savings Expires September 15th.
Learn more and register for $95 per State Permit Service (does not include membership to Sales Tax System).