Isn't the New Mexico gross receipts tax the same as sales tax?
Not exactly! Gross receipts tax applies to businesses operating in New Mexico or having sales to customers in New Mexico. Gross Receipts Tax (GRT) is not the same as sales taxOverlooking New Mexico Gross Receipts Tax can be a expensive mistake.

Sales taxes. In most states, sales tax applies only to sales of things.

Gross receipts tax. The major factor that makes GRT different is that it also applies to sales of services as well as things.  Note that construction activity is considered to be providing services. Commissions are are also subject to GRT unless the sale on which they are based is not subject to GRT.

Important: Deductions for determining taxable gross receipts should not be confused with deductions of business expenses income tax returns.

Tip. Even though exempt gross receipts are not reportable, it’s a good practice to report them anyway. That’s because the TRD compares sales businesses report to the IRS with gross receipts reported to the TRD. Any instance of under-reporting causes the state to conduct an audit to determine the apparent amount of GRT owed by the seller.