When it comes to sales taxes, most of the compliance responsibilities fall upon the seller.
If your business happens to make taxable sales of property or services, you need to be prepared to handle the obligation to register with your state’s department of revenue; compute the tax; collect the tax; and pay the tax to your state.
You Must Register with State If You Make Taxable Sales.
In some states, it’s a criminal offense to operate without the requisite permit, so you should secure a permit before you make your first sale. Once you receive the permit, you must display it at your place of business.
Once you’ve collected sales tax from your purchasers, the obvious next step is reporting and paying the tax to the appropriate authorities. Most states generally require you to file a tax return and remit the sales and use taxes you have collected on a monthly basis.
However, each state has special rules that may require you to file and pay on a more or less frequently, depending on the amount of your tax liability.
Accurate Recordkeeping Is Essential!
As is the case when you file any tax return, you must maintain an accurate set of books and records that substantiates the sales tax liability you reported on the return. The requisite records generally will include such items as receipts, invoices, cash register tapes, working papers, and exemptions certificates provided by purchasers. Each state specifies a length of time for which the records must be maintained.
We are here to continuously support our clients in accomplishing their business and personal goals
SunTax Consulting provides affordable and reliable Sales Tax Registration and Reporting services.
