Sales & Use Tax: Nebraska
Contents
Disclaimer
This page is derived from a PowerPoint handout created by the Nebraska Department of Revenue which is used for training purposes in conjunction with the oral presentation given by Department training staff.
It is not intended to be a stand‐alone document. It is not an information guide, nor does it carry regulatory or statutory authority.
Nebraska tax statutes,regulations, information guides, and other resources are available at http://www.revenue.ne.gov.
Sales Tax & Use Tax Comparison
A sales transaction is defined as "the transfer of title or possession of an item or taxable service for consideration."
Sales tax and use tax are NOT BOTH due on the same transaction.
SALES TAX | USE TAX |
---|---|
Collected and remitted by the seller | Paid directly to the Department by the purchaser/consumer |
Calculated on the gross receipts.
A transactional tax: based on the transaction rather than the item sold |
Due when:
|
Similarities
OR
|
Nonprofits
Organizations with 501(c) status are exempt from Federal Income Tax and Nebraska Income Tax but are not exempt from Nebraska Sales Tax or Nebraska Use Tax.
ENTITIES WHO QUALIFY FOR A NEBRASKA SALES & USE TAX EXEMPTION NUMBER | |
---|---|
Type | Criteria |
Religious |
For more information on religious organizations, read REG-1-091 |
Educational Institutions |
For more information on educational institutions, read REG-1-092 |
Nonprofit Service Providers for the Blind and Visually Impaired | |
Healthcare Nonprofits (Licensed in Nebraska) |
|
Other Nonprofits (Licensed in Nebraska) |
For more information on nonprofit organizations, read REG-1-090 |
Notes
- Construction of new facilities is not exempt until project completion, appropriate licenses are obtained, and an exemption number has been issued by the Department.
- No sales tax exemption is allowed until the facility is licensed.
- Dual‐use facilities(for example, assisted living and independent living facilities) are sales tax exempt only for the exempt portion.
- Once the facility is licensed, the facility may apply for a refund of the sales tax paid by the contractor
Auctions
Nebraska Department of Revenue: Nebraska Sales & Use Tax for Auction Sales
How to Obtain a Nebraska Sales & Use Tax Exemption Number
Apply for exemption by filling out Form 4.
Resources & Further Reading
Nebraska Department of Revenue: FAQs for Nebraska Sales and Use Tax
Nebraska Department of Revenue: Are federal 501(c) nonprofit organizations exempt from sales tax?
DOCUMENT SECTIONS | |
---|---|
When making tax exempt purchases | Page 23 |
When making sales
|
Page 28 |
When items are sold at fundraising events | Page 32 |
Example fundraising sale | Page 33 |
Prepared food | Page 34-35 |
Coin-Operated Machines | Page 41 |
Gift Baskets | Page 43 |
Construction Contracts with Exempt Entities | Pages 45-54 |
Lottery & Raffle Overview/Other Games SEE ALSO: Charitable Gaming: Nebraska | Pages 56-62 |
Nebraska Department of Revenue: Nebraska Taxation of Nonprofit Organizations
Nebraska Department of Revenue: Nebraska Sales and Use Tax
Nebraska Department of Revenue: Nebraska Sales & Use Tax for Auction Sales