Any business that makes taxable sales of property or services must meet certain sales tax compliance responsibilities. These responsibilities include registering in any jurisdictions where sales are made, obtaining the required sales tax permits, collecting any sales tax due on items or services sold, filing all necessary sales tax returns and paying any tax amounts owed.
The specifics of collecting and reporting sales tax:
- A business must register to collect sales tax by applying for the necessary permits in each jurisdiction where sales will be made.
- The amount of sales tax to be collected must be determined by applying the current sales tax rate for the jurisdiction where the sale is made.
- Sales tax rates for any given jurisdiction may vary according to the item or service sold.
- The amount of tax owed on any taxable sale may be reduced by one or more of the following: discounts, trade-ins, rebates, returns, transportation charges and post-sale labor and service costs.
- In certain instances, businesses may deduct sales tax collection costs.
- Sales tax returns must be filed and sales tax amounts paid according to the requirements of the collecting tax agency.
Because of the complexity of collecting and reporting sales tax, often to numerous jurisdictions with different sales tax requirements, it may be advisable for a business to enlist the help of a professional to fulfill their responsibilities in this area. Our firm offers a complete range of sales tax services from account creation to support for maintaining the internal controls necessary for collecting and reporting sales tax. We provide registration and permit assistance, advice on interstate sales and help with keeping abreast of tax exceptions, tax reductions and tax holidays. In addition, we prepare all sales tax filings and offer full sales tax audit representation.
If you are a business owner seeking business tax services or business solutions, the licensed professionals at Winter & Winter Insurance Services, Inc. can provide you with the expertise you are looking for. Call us today at (866) 254-2996 or fill out our secure online request form to receive a free, no obligation consultation.