New Mexico Sales Tax Guide
Chapter 5: Filing and paying New Mexico sales tax
You're registered with the New Mexico Taxation and Revenue Department and you've begun collecting sales tax. Congratulations! Remember, those tax dollars don't belong to you. As an agent of the state of New Mexico, your role is that of intermediary transferring tax dollars from consumers to state and local tax authorities. Let's take a deeper look at how filing New Mexico gross receipts tax returns impacts your business.What does it mean to file an New Mexico gross receipts tax return?
Technically speaking, filing New Mexico gross receipts tax returns is a two-step process comprised of submitting the required sales data and remitting the collected tax dollars (if any) to state and local tax authorities.
In most states, there are a number of options for submitting sales tax data to the state. Business owners may complete a New Mexico sales tax filing form and mail it to the New Mexico Taxation and Revenue Department or they can file electronically online. In all states, filing online is recommended.
The filing process forces the business owner to detail their total sales, the amount of gross receipts tax they have collected, and from where. The New Mexico Taxation and Revenue Department wants to be kept up to date on your business growth (or lack thereof) to make sure they are getting the tax dollars due. By completing ongoing filing of monthly, quarterly, or semi-annual, or annual New Mexico sales tax returns, they stay abreast of your growing company.When am I required to file my gross receipts tax return?
The New Mexico Taxation and Revenue Department will assign you a filing frequency. Typically, this is determined by the size of your business. State governments typically ask larger businesses to file more frequently. Visit our New Mexico filing due dates page for more information.Am I required to file and pay my New Mexico sales tax at the same time?
New Mexico gross receipts tax returns must be filed and paid at the same time and are governed by the same due date.I want to webfile my New Mexico sales tax. What are my options?
Avalara has built the TrustFile product to allow business owners a quick and easy way to prepare and webfile New Mexico sales tax returns. Users can sign up and use the service to prepare New Mexico returns free for 30-days.
Filers may also file directly with the New Mexico Taxation and Revenue Department by visiting their site and entering your transaction data manually. This is a free service, but preparing New Mexico sales tax (breaking it down by jurisdiction) can be time consuming - especially for larger sellers.Can a 3rd party file my gross receipts tax on my behalf?
Yes! Many business owners recognize they are not a tax professional and therefore, choose to outsource their gross receipts tax sales and use tax filing to services like Avalara TrustFile or to an accountant or bookkeeper. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and a lack of deep knowledge about New Mexico sales tax code.What happens if I file or pay my gross receipts tax return late?
In the event that you miss the filing deadline for New Mexico sales tax, penalties are calculated at 2% per month (or partial month). Penalties are limited to 20% of the unpaid principal of tax due.
Interest accrues daily on the unpaid principal of tax due. Interest rates can change on a quarterly basis.
It should be noted that interest accrues on tax that isn’t paid on or before your assigned due date even if the New Mexico Department of Taxation grants you an filing extension. By law, interest cannot be waived.Do I need to file a return if I didn't collect any gross receipts tax in New Mexico?
Yes! Once you've successfully registered for and been issued a Tax ID Number, you are required to file at the completion of each assigned collection period regardless of whether any gross receipts tax was collected. This is what is known as a "zero-tax filing".
Failure to submit a required zero-tax filing can result in penalties imposed on your business by the New Mexico Taxation and Revenue Department so don't take this responsibility lightly.If I close my business, do I need to file a final gross receipts tax return?
Yes! The New Mexico Taxation and Revenue Department requires all businesses to "close their books" by filing a final gross receipts tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.Does the New Mexico Taxation and Revenue Department offer a discount for filing on time?
At this time, the New Mexico Taxation and Revenue Department does not offer gross receipts tax filers a vendor discount.