I own a small consulting company. I have a new client that is out of state. When I send an invoice, do I add sales (gross receipts tax)? It is my understanding that New Mexico does not collect tax on goods or services sold for use out of state.

ANSWER

The BIDaWIZ Team's Answer:

Since the actual work is performed in New Mexico you would be subject to the Gross Receipts Tax as per state guidance. However, technically speaking your clients can claim that they aren't subject to the tax as per state tax nexus rules. You may want to read up on NM's Out-of-State Services Exemption (7-9-13.1).