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Set Up New Mexico Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax

Add New Mexico to the places where you collect tax. This tells AvaTax to calculate tax on New Mexico transactions. See the New Mexico Taxation and Revenue Department website for details about nexus, registration, and taxes in New Mexico.

New Mexico has a Gross Receipts Tax which can be passed on to customers and a Compensating Tax which is a use tax.

Before you add New Mexico, there are two things you need to do:

When you add New Mexico to the places where you collect tax, pick the right tax type based on the way your business is registered and the tax return you need to file.

  • If you collect Compensating Tax, set the tax type to Sales or sellers use tax
  • If you're only subject to the Gross Receipts Tax and don't collect Compensating Tax, you can set the tax type to either Sales tax only or Sales or sellers use tax

"Sourcing" determines the location where a sale is taxed. New Mexico is an origin-sourced state.

Add Your Company Locations

New Mexico doesn't require location reporting on the returns. Add any physical locations you have in New Mexico to enhance your company setup and track sales by location

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

  • Select form NM TRD41413  if you're required to file and remit New Mexico Gross Receipts Tax
    • Confirm your filing frequency on the registration information provided by the state
    • Enter your state-assigned, eleven-digit registration ID in the correct format. Example: 01234567890-GRT
    • Enter your Administrator login credentials for the New Mexico Taxpayer Access Point when you schedule the return
  • If you owe consumer use tax, select the NM TRD41412 form for Compensating tax.

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