Connect with us

Hi, what are you looking for?

Finance

Reporting and Filing Sales Tax

After you are issued a sales tax permit by the state, you will also be assigned a specific sales tax filing frequency. What this means is essential that you will have to pay your sales tax in specific periods, your due date will be either monthly, annually or even quarterly or every six months. IT is essential that you keep in mind that the sales tax due dates of every state are different. This small article will help you understand how you should file your sales tax.

General due dates for states

A lot of states will want you to pay your sales tax on the 20th days of the month post the period of taxation. Certain other states will like to hear from you on the month’s end or the middle like the 15th or the 28th. Whenever you have your due date, it will be crucial that you make a report on the exact amount that you have collected as your sales tax for each state. A lot of states do not simply want to get a consolidated number for your sales tax, but they also need to know the exact amount of tax that you have collected from your buyers belonging to specific taxing jurisdictions. As a result of this, filing sales tax becomes quite difficult when you have sales on several channels. You will have to integrate all of these on one single sales tax report. After you report the amount of sales tax that you have collected, you will need to file the sales tax return and then remit the amount that you have collected from your customers.

Resale certificates

In several states, the sales tax permit will also serve as an authentic resale certificate or a seller’s permit. In case you do retail arbitrage that is buying certain items in retail with the intention of selling them later then you may not need to pay a sales tax on certain items if you present the resale certificate to another participating retailer. However, retailers are not required to accept the resale certificate. Thus, even if you have valid resale certificates but your retailer can still charge you sales taxes and you can reclaim the sales tax which you paid during the next time when you file your sales taxes. It is also crucial that you keep in mind that the resale certificates are to be used strictly when you want to buy the items which you want to sell. It is strictly illegal to be buying items like packing and office supplies or any other items for your personal use. In fact, the state will consider it a fraud on both you and your retailer and both of you may face strict fines and even penalties.

Periodic sales tax checking up

You will need to always check up on your sales tax compliance details on a regular or periodical basis. Certain business activities like hiring employees from other states, opening locations in other states or even making more sales and sales transactions in a specific state which is above a set limit can result in you having to pay sales taxes to these states. There are specific state-wise thresholds that are in place for this purpose. However, you can also close certain locations or fire an employee from a certain state and no longer pay the sales tax to that state. In case your tax liability changes then you need to update all your sales tax permits in each state and also make an update on the total sales tax collection from different marketplaces. Periodic reviews are great because they can ensure the fact that you have all compliances ready with your sales taxes.

You can get more information about the various technicalities involved in sales tax filing from professional tax advisors. In case you find it difficult to do the sales tax calculation by yourself, you may consider using an online sales tax calculator to do the job for you.

Conclusion

It is crucial that you should understand how the sales tax can affect your online business. There are several rules regarding tax filing and getting back tax returns. Hopefully, the information mentioned in this article will have helped you. RT YOUR FREE TRIAL

Advertisement
Advertisement

You May Also Like

Travel

The Maine Coast has greater shoreline than California, and with its old fashioned seaside cities, historical fishing villages, and pristine beaches, it offers an...

Entertainment

I have seen people throwing Birthday surprise parties in big hotels and lounges. No doubt they seem very exciting and loud but personally I...

Finance

The COVID-19 is rapidly increasing the number of patients worldwide, and its impacts have crushed the global economy. No doubt, it will take us...

Tech

Customers today are more digitally active than ever before. If you are business, you have no choice but to have your digital presence so...

Copyright © 2020 Feednamer.com. All Right Reserved.
Email : thefreakhub@gmail.com