Gross Receipts Tax Problems Solved

The New Mexico Tax & Revenue Department aims to help businesses understand gross receipts taxes and comply with destination sourced reporting that was introduced in 2019 and 2020.

Destination sourcing requires taxpayers to pay the rate in effect where their goods or services are delivered. The rules, which affect all businesses and have caused confusion among owners and bookkeepers, were put in place to allow the state to collect GRT on internet sales. The department mitigates confusion by offering webinars and tools that promote compliance.

In-person meetings and workshops are still on COVID-hiatus, but the department adds webinars to its YouTube page regularly. Find all of them here.

The department also offers tools to help businesses determine the effective tax rates at each location a business delivers products or services.

One tool is an application programming interface (API) that can be integrated into e-commerce or other web-based applications to automate the matching of street addresses to GRT rates and location codes. The other is a web-based service that allows users to upload bulk files of addresses that are then matched to GRT rates and location codes.

The tools are explained on this page of the NM TRD website.

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