Unlike many states that require businesses to collect a tax on products sold (referred to as a sales tax), New Mexico imposes the state’s Gross Receipts Tax (GRT) that must be collected on the sale of products AND services. Sell advice or IT services, even if you don’t sell a tangible product? New Mexico’s GRT must be added to the amount your client will pay.
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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.
Continue readingConfused About Gross Receipts Tax Changes?
Effective July 1, 2021, New Mexico changed Gross Receipts Tax (GRT) regulations to “destination sourcing,” which requires most businesses to calculate and report GRT based on where their goods or the product of their services are delivered. Prior to July 1, New Mexico used “origin-based sourcing” in which most GRT was reported at the seller’s place of business.
To help businesses navigate the new rules, the Economic Development Department is hosting a webinar by the New Mexico Taxation and Revenue Department to provide insight and answer questions about how businesses can comply.
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