Sales and Excise Tax

Is Sales and Use Tax payable monthly or quarterly?

Sales tax returns are due on a monthly basis, but the Department does allow less frequent filing based upon the amount of sales tax reported annually. The Department adjusts filing frequencies programmatically each June.

Taxpayers may request a filing frequency change directly from the Department as needed; however, taxpayers may not file less frequently than the payment history requires. Please direct filing frequency requests to KRC.WebResponseSalesTax@ky.gov.

Are services provided to tax-exempt organizations still exempt from sales tax (i.e., 501(c)(3)s, certain governmental entities, school districts, etc.)?

Yes, to the extent the service is used solely within the educational, charitable, or religious function of the entity per KRS 139.495.

Also, please keep in mind that contractors cannot use an organization's exemption in order to make tax-exempt purchases of the materials that they use to fulfill their construction contracts for improvements to real property. See Section 3 of Kentucky Regulation 103 KAR 26:070.

Do service providers need to keep exemption certificates on file for tax-exempt organizations?

Yes, fully completed exemption certificates should be maintained as provided under KRS 139.260.

What is the tax rate for the new sales tax on services?

The rate for the new sales tax on services is 6%.

Is Sales and Use Tax payable monthly or quarterly?

Are services provided to tax-exempt organizations still exempt from sales tax (i.e., 501(c)(3)s, certain governmental entities, school districts, etc.)?

Do service providers need to keep exemption certificates on file for tax-exempt organizations?

What is the tax rate for the new sales tax on services?

Sales and Excise Taxes

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