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eCommerce Sales Tax Compliance

 

How To Manage eCommerce Sales Tax Compliance?

In this article, you will learn:

  1. Steps To E-Commerce Sales Tax Compliance

The state and local US governments have introduced many changes to the sales tax compliance rules in recent years to adapt to the rapid growth of eCommerce. Certain rules have simplified the process of collecting and remitting sales tax. However, others have complicated the entire sales tax process.

Two major developments are responsible for the dramatic change in the sales tax landscape of the US. The first development was the US Supreme Court’s South Dakota vs Wayfair Inc. decision that resulted in businesses having no physical presence in a state, like having a physical store, warehouse, office, or remote employees, to collect and remit sales tax to the concerned sales tax authorities.

Once the Wayfair decision was announced, all 45 states with a statewide sales tax and the District of Columbia adopted requirements governing sales tax collection and remittance by remote sellers based on an economic nexus as opposed to a physical nexus.

The impact of such a decision on the online sellers was that they now had to deal with the unique sales tax regulations of not just 45 States but also 13,000 jurisdictions within the US states.

The second major development that had an impact on the way online sellers did business was the shift toward online shopping during the pandemic which led to a dynamic increase in online sales. This resulted in many businesses expanding into new markets and diversifying the portfolio of goods and services that they offered to consumers online.

All these developments had a major impact on the e-commerce businesses paying taxes. They now had to be aware of the regulations concerning sales tax registration with state tax authorities, state-by-state sales tax rates, determining their sales tax liability, and filing sales tax returns.

If you are an eCommerce business owner who needs to know how to manage e-commerce sales tax compliance step-by-step, then read further. In this article, we will explain the steps involved in e-commerce sales tax compliance, from determining your sales tax liability to filing your sales tax returns.

Read: US eCommerce Sales Tax: What You Need to Know?

Steps To eCommerce Sales Tax Compliance

E-commerce sales tax compliance can be a complex and evolving area, as tax laws vary by jurisdiction and are subject to change. However, there are some general guidelines that you need to consider to ensure tax compliance.

These guidelines are described in each of the e-commerce sales tax compliance steps described below.

1. Determine Sales Tax Nexus

Determining sales tax nexus for you as a remote seller involves assessing the various factors that create a sufficient connection between your business and a particular state, triggering sales tax obligations. Before the Supreme Court imposed the South Dakota vs Wayfair Inc. decision, the physical presence like having a physical store, warehouse, or employees established the sales tax nexus.

While the physical presence criteria are still applicable in some cases, economic nexus has become more prevalent after the Wayfair decision as many states adopted economic nexus thresholds, such as a minimum amount of sales revenue or a certain number of transactions within the state.

Therefore, as an eCommerce business, you must be aware of the economic nexus thresholds in each state where you may have customers. Depending upon what criteria a state adopts for calculating its economic threshold, you will have to keep track of the factors that go into the calculation of the economic threshold of each state where you have customers.

For instance, all states that impose sales tax use the monetary value of sales revenue as an economic threshold criterion. Therefore, you must evaluate your total sales revenue on a state-by-state basis where you have customers. If your sales in a particular state exceed the economic nexus threshold set by that state, you may have a sales tax obligation in that state.

Then, some states use a transaction count threshold as listed in the state-by-state nexus rules table above. Accordingly, if the number of transactions you conduct with customers in a state surpasses the specified threshold, you may establish an economic nexus in that state.

Furthermore, certain states take into consideration gross receipts or the total amount of sales without deducting returns or other allowances for the calculation of the economic threshold. As an eCommerce business, you must be aware of any state-specific rules related to gross receipts.

Apart from this, some states have enforced affiliate or click-through nexus laws. If you have agreements with in-state affiliates or entities that refer customers to your business, it may create a nexus.

Finally, if you sell through online marketplaces, you must check whether the marketplace facilitator has already assumed the responsibility for collecting and remitting sales tax on your behalf. Note that some states have enacted marketplace facilitator laws.

As mentioned earlier, the marketplace facilitator laws establish tax obligations on an online marketplace that facilitates transactions between buyers and third-party sellers. In this context, the marketplace facilitator is responsible for collecting and remitting sales tax on behalf of the third-party sellers who use the platform.

Remember that the sales tax laws are subject to change. Therefore, as a remote seller, you must regularly monitor updates in state laws to ensure that you are aware of any new economic nexus thresholds or changes in requirements.

You can even consider using sales tax software or services that can help you automate the determination of nexus and calculate sales tax based on the latest rules in each jurisdiction.

Besides this, you can seek advice at freecashflow.io to ensure that you interpret and apply the sales tax laws correctly. We can provide you with guidance on your specific situation and help you stay compliant.

Read: How Does Sales Tax Work For E-Commerce?

2. Classify Products And Services

For eCommerce sales tax compliance, it is important that as a remote seller, you classify products and services correctly. The product or service classification determines the accurate and consistent classification of products and services that will help you comply with sales tax laws, calculate the correct amount of sales tax, and avoid potential legal and financial consequences.

Different products and services may have varying taxability. Some items may be fully taxable, while others may be exempt or subject to a reduced tax rate. Proper classification ensures that the appropriate tax treatment is applied to each product or service.

The following section represents some of the common categories and considerations for product and service classification in sales tax:

a. Tangible Personal Property (Physical Goods)

Tangible personal property refers to physical, touchable items that are considered for sales tax purposes. In the context of sales tax laws, the classification of property as tangible personal property helps determine whether the sale of such items is subject to sales tax.

Examples of tangible personal property include clothing, electronics, furniture, vehicles, appliances, books and physical media, tools and equipment, art and collectibles, toys and games, sports equipment, etc.

Generally, sales tax is applied to a wide range of tangible personal property, including clothing, electronics, furniture, appliances, and other physical goods sold at retail.

b. Digital Goods And Downloads

Digital goods are intangible products that are delivered electronically, often in a digital format. These goods exist in a non-physical form and are typically accessed, downloaded, or streamed via digital devices such as computers, smartphones, or tablets.

Common examples of digital goods include digital media, entertainment content, software and applications, digital art and design, cloud services, digital subscriptions and memberships, and much more.

The taxation of digital goods in the United States can vary by state, and the treatment of digital goods for sales tax purposes has been a subject of evolving legislation.

For instance, in some states, digital goods such as e-books, music downloads, streaming services, and software downloads may be subject to sales tax. The taxability of these goods can depend on factors such as the state’s definition of tangible personal property and whether the state has specifically addressed the taxation of digital products.

South Dakota, for example, taxes tangible personal property. As defined by the statute, tangible personal property includes electricity, water, gas, steam, and pre-written computer software.

Besides this, South Dakota taxes “product transferred electronically” separately. However, the state fails to differentiate between software, music, and videos. As a result, it puts all of these goods in one category irrespective of the fact whether such goods are provided for temporary or permanent use.

On the other hand, some states may offer exemptions or reduced tax rates for certain digital goods. For instance, SSUTA allows member states to exempt prewritten computer software delivered electronically or by “load and leave” from sales tax. Here, load and leave means delivery of the computer software to the buyer by use of a tangible storage media where the tangible storage media is not physically transferred to the buyer.

Accordingly, apart from the NOMAD states, the remaining 45 states and Washington, D.C. in the US impose a tax on the transfer of prewritten software, provided such software is loaded on a CD. Note that software loaded on a CD is considered tangible property. On the contrary, 12 states exempt prewritten software delivered electronically from sales tax. This leaves 33 states and Washington, D.C., that tax prewritten software delivered electronically.

Thus, as we can see, the treatment of digital goods can vary by jurisdiction, and some states may impose sales tax on certain digital products. Furthermore, the classification and taxation of digital goods have been subjects of evolving legislation, especially in the context of e-commerce and the digital economy. Therefore, as an eCommerce business, you should be aware of the specific rules in your respective locations regarding the taxation of digital goods.

Read:

c. Services

Most of us assume that sales tax is imposed only on tangible personal property. This is so because historically (during the 1930s when the United States first implemented the sales tax laws), the state laws regarding sales tax in most of the states enumerated that only sales of tangible personal property are subject to sales tax unless the laws specifically exempt some of the property. While the sales tax laws for services assumed that services are exempt unless specifically enumerated.

However, when the US economy transitioned from a manufacturing to a services-based economy, many states started implementing sales tax on services. Unfortunately, many service-oriented businesses still believe services are exempt from sales tax.

Note that the NOMAD states, (New Hampshire, Oregon, Montana, Alaska, and Delaware) do not impose sales tax on either goods or services. However, out of the remaining 45 states, Hawaii, South Dakota, New Mexico, and West Virginia have tax services. Furthermore, these states specifically enumerate certain services exempted from sales tax.

Accordingly, the remaining 41 states and the District of Columbia do not tax services. However, these states may enumerate within the law certain services that may be taxed. Note that every state imposes sales tax on different sets of services thus making it challenging for businesses to understand what services to tax and where to file taxes.

The general categories of services that states may tax include:

  • Services related to improving or repairing tangible personal property (TPP) including car repair or carpentry services.
  • Services to real property improving buildings and land fall including landscaping and janitorial work.
  • Services performed for companies and businesses including credit reporting agencies and telephone answering services.
  • Personal services including services offering personal grooming or other types of “self-improvement”. Tanning salons, non-licensed massage therapists providing massages, and animal grooming services would fit under this category.
  • Professional services including physicians, accountants, and other licensed professionals.
  • Amusement or recreation services including admission to amusement parks and other types of entertainment.

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d. Bundled Transactions

A bundled transaction typically involves the sale of two or more distinct products or services together for a single, non-itemized price.

This can create challenges for you as a business when determining the taxability of a bundled transaction. That’s because, in a bundled transaction, some components may be taxable, while others may be exempt. The taxability of the entire bundle is determined by the tax treatment of each component.

Note that for the transaction to qualify as a bundled transaction, every component included in the transaction must be distinct and identifiable. Depending on how each state defines the sale price or purchase price in case of a retail sale, some states may not recognize certain items as distinct and identifiable. For instance, some states may consider delivery service charges added to the product price as part of a single price and not two distinct and identifiable items.

The second criterion that qualifies a transaction as a bundled transaction is that the transaction should be priced as a single, non-itemized amount that the buyer pays for all the goods and services that are included in the transaction. Thus, a retail sale is not considered as a bundled transaction if the sale of two or more items is not priced as a single, non-itemized amount.

Now, bundling transactions is important for you as a business because it can save you time and effort and provide you with a simple way to price products for your customers. However, the simplicity of pricing a bundled transaction may pose a challenge for you as a business when charging sales or use tax on such transactions.

For instance, bundling a taxable tangible personal property with a non-taxable service could result in taxing the entire bundled transaction.

Therefore, to determine the correct taxability of a bundled transaction, the US sales tax laws of different states enumerate that the true object test must be applied. The primary objective of applying this test is to determine what is the true purpose of the transaction and what is the purchase intent behind such a transaction.

Remember that the true object test is subjective in nature. Thus, it is challenging to apply this test, especially when a given bundled transaction is a complex one. In such a transaction, it may be difficult for you as a business to distinguish or separate the service component from the tangible personal property component.

In addition to the true object test, another rule that is applied for determining the tax treatment of a bundled transaction is the De Minimis rule.

De minimis rules in the context of bundled transactions refer to thresholds or exceptions that states may establish, allowing a certain level of flexibility or simplification for minor components within a bundle. These rules recognize that, in some cases, the tax treatment of small or insignificant elements in a bundled transaction may be impractical or burdensome.

De minimis rules typically apply to components of a bundled transaction that are considered small or insignificant in terms of their value or impact on the overall transaction. States may set specific monetary thresholds below which certain components within a bundle are exempt from sales tax. If the value of a particular component falls below the threshold, it may be treated as de minimis.

Thus, De minimis rules are often designed to simplify administrative processes for businesses by allowing them to treat small components as exempt without the need for detailed itemization or separate tax calculations.

3. Understand Sales Tax Rates

Once you determine your economic nexus and the category of products and services under which you will start charging sales tax, the next step in sales tax compliance is to determine the correct sales tax rate.

Note that 45 states and the District of British Columbia in the US collect state-wide sales taxes. Furthermore, 38 states collect local sales taxes. In addition to this, five NOMAD states including New Hampshire, Oregon, Montana, Alaska, and Delaware do not apply sales tax at all. Of these, only Alaska allows localities to impose local sales tax rates.

Given that some states apply even local sales tax rates in addition to the state sales tax rates, the combined state and local rates imposed by these states can be quite high when compared to the sales tax rates imposed by the other states. Therefore, as an eCommerce seller doing business in multiple states, you must be aware of the state sales tax rates as well as the local sales tax rates that are imposed on sales in each of these states to stay tax compliant and to know how much you need to pay in sales tax.

For instance, states including Tennessee (9.548 percent), Louisiana (9.547 percent), Arkansas (9.44 percent), Washington (9.40 percent), and Alabama (9.24 percent) are the states with the highest average combined state and local sales tax rates. Whereas, Alaska (1.81 percent), Hawaii (4.44 percent), Wisconsin (5.43 percent), Wyoming (5.44 percent), and Maine (5.50 percent) are the five states with the lowest average combined rates.

Then, the state with the highest state-level sales tax rate of 7.25 percent in California. Then, Indiana, Mississippi, Rhode Island, and Tennessee tied for the second-highest statewide rate at 7 percent. The state of Colorado has the lowest non-zero state-level sales tax rate at 2.9 percent. Furthermore, Alabama, Georgia, Hawaii, New York, and Wyoming are the five states with 4 percent sales tax rates.

Then, Alabama (5.24 percent), Louisiana (5.10 percent), Colorado (4.89 percent), New York (4.53 percent), and Oklahoma (4.49 percent) are the five states with the highest average local sales tax rates.

Thus, as we can see, each state in the U.S. has its own statewide sales tax rate. Additionally, many local jurisdictions (counties, cities, and special districts) impose additional sales taxes on top of the state rate which can result in a total combined rate that includes both state and local components. Therefore, as an eCommerce business, you must be aware of the specific rates in the state where you are making sales.

In addition to understanding the sales tax rates, you must know the sourcing rules that determine the location (jurisdiction) to which sales tax should be allocated. These rules help determine whether sales tax is based on the seller’s location (origin) or the buyer’s location (destination). Sourcing rules play a crucial role in sales tax compliance, especially for businesses operating in multiple jurisdictions.

The following table showcases the state sales tax rates, the local state sales tax rates, and teh combined sales tax rates of each of the US states. This will help you stay apprised with the current sales tax rates as well as to stay sales tax compliant.

State and Local Sales Tax Rates, Midyear 2023
State State Tax Rate Rank Avg. Local Tax Rate Combined Rate Rank Max Local Tax Rate
Alabama 4% 40 5% 9% 5 8%
Alaska 0% 46 2% 2% 46 8%
Arizona 6% 28 3% 8% 11 5%
Arkansas 7% 9 3% 9% 3 6%
California (a) 7% 1 2% 9% 7 5%
Colorado 3% 45 5% 8% 15 8%
Connecticut 6% 12 0% 6% 33 0%
Delaware 0% 46 0% 0% 47 0%
Florida 6% 17 1% 7% 24 2%
Georgia 4% 40 3% 7% 19 5%
Hawaii (b) 4% 40 0% 4% 45 1%
Idaho 6% 17 0% 6% 37 3%
Illinois 6% 13 3% 9% 8 5%
Indiana 7% 2 0% 7% 25 0%
Iowa 6% 17 1% 7% 29 1%
Kansas 7% 9 2% 9% 9 4%
Kentucky 6% 17 0% 6% 38 0%
Louisiana 4% 37 5% 10% 2 7%
Maine 6% 29 0% 6% 42 0%
Maryland 6% 17 0% 6% 38 0%
Massachusetts 6% 13 0% 6% 35 0%
Michigan 6% 17 0% 6% 38 0%
Minnesota 7% 6 1% 8% 17 2%
Mississippi 7% 2 0% 7% 22 1%
Missouri 4% 38 4% 8% 12 6%
Montana (c) 0% 46 0% 0% 47 0%
Nebraska 6% 29 1% 7% 28 2%
Nevada 7% 7 1% 8% 13 2%
New Hampshire 0% 46 0% 0% 47 0%
New Jersey (d) 7% 8 -0% 7% 30 3%
New Mexico (b) 5% 34 3% 8% 16 4%
New York 4% 40 5% 9% 10 5%
North Carolina 5% 35 2% 7% 27 3%
North Dakota 5% 32 2% 7% 23 4%
Ohio 6% 27 1% 7% 20 2%
Oklahoma 5% 36 4% 9% 6 7%
Oregon 0% 46 0% 0% 47 0%
Pennsylvania 6% 17 0% 6% 34 2%
Rhode Island 7% 2 0% 7% 25 0%
South Carolina 6% 17 1% 7% 18 3%
South Dakota (b) 4% 39 2% 6% 36 5%
Tennessee 7% 2 3% 10% 1 3%
Texas 6% 13 2% 8% 14 2%
Utah (a) 6% 16 1% 7% 21 4%
Vermont 6% 17 0% 6% 32 1%
Virginia (a) 5% 31 0% 6% 41 3%
Washington 7% 9 3% 9% 4 4%
West Virginia 6% 17 1% 7% 31 1%
Wisconsin 5% 32 0% 5% 44 2%
Wyoming 4% 40 1% 5% 43 2%
D.C. 6% 0% 6% 0%

Source: Tax Foundation

4. Register For Sales Tax Permits

As a seller, you typically need to register for a sales tax permit before you start collecting and remitting sales tax and use tax in a state where you make sales to customers. However, you may not require a sales tax permit in all the states where you make sales.

What Is A Sales Tax Permit?

A sales tax permit, also known as a seller’s permit, resale permit, or sales tax license, is an official document issued by a state’s tax authority that grants you as a business the legal authority to collect and remit sales tax on taxable sales. This permit is essential for you as a business if you sell tangible goods, certain digital goods, and, in some cases, taxable services.

Who Needs A Seller’s Permit?

You are required to hold a sales tax permit in states where you have a physical or economic nexus. Nexus is the connection between a business and a taxing jurisdiction that triggers sales tax obligations. As mentioned earlier, there are various ways in which you as a business can establish a nexus with a state where you make sales.

Furthermore, different states have different time frames within which you as a business must register for a sales tax permit in states where you make sales. For instance, as of August 2023, in states including Arkansas, California, the District Of Columbia, Idaho, Indiana, Kansas, New Jersey, and Wisconsin, a business must register as soon as it makes the next transaction into the state after exceeding the threshold.

Do You Need A Seller’s License To Sell Online?

Just like brick-and-mortar businesses, even eCommerce businesses must obtain a seller’s permit and comply with state sales tax and use tax rules in states where they have a nexus. As mentioned above, as a business, you can establish a nexus in the state even if you do not have a physical presence in that state. For instance, nexus can be established through affiliates (Affiliate Nexus), clicks or referrals (Click-Through Nexus), or the economic value of transactions (Economic Nexus).

Do You Need A Seller’s Permit To Sell On Amazon And Other Marketplaces?

In case you are a seller selling products through a marketplace facilitator like Amazon, in such a case, the marketplace facilitator is required to collect and remit sales tax on your behalf to the sales tax authority of the state where you have a nexus. That’s because the state sales tax laws require marketplace facilitators to register for sales tax permits in states where they have nexus and collect and remit sales tax on your behalf to the state’s sales tax authorities.

These laws have been enacted in response to the evolving landscape of e-commerce, where many transactions occur through online marketplaces. The goal is to simplify the sales tax collection process, particularly in cases where multiple sellers operate on a single platform.

How To Get A Sales Tax Permit?

Each state enumerates its own requirements to apply for a sales tax license. For instance, different states have different application forms that you must complete and file with the State Department of Revenue as a business in order to obtain your sales tax license for undertaking retail sales in a particular state.

To apply for a sales tax permit, you need to provide a lot of information including:

  • Tax identification number (TIN), Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (FEIN) as the case may be
  • State driver’s license, United States passport, or any other proof of identification considered valid by the state
  • Details of Principal Place of Business including phone number, email address, business address, and information about owners, members, partners, or officers involved in the business, details of business acquisition or purchase, etc.
  • Sales tax account information including type of sales, list of products and services, and the sales tax filing frequency
  • Withholding tax account information including the type of withholding such as W2, 1099, W2G, or oil and gas withholding and filing frequency of the withholding tax
  • An applicable amount towards the sales tax license fee

To apply for a sales tax permit in any of the states where you have a nexus, the following are the general steps that you need to follow:

1. Visit the state’s online portal that serves as a filing tool to register for a sales tax permit.

2. Complete the online state license application form. Be thorough and accurate in providing the required information.

3. Some states may require supporting documents such as articles of incorporation, a copy of your business license, or other documentation. Be prepared to submit any required paperwork.

4. Some states may charge a registration fee for obtaining a sales tax permit. Check the fee requirements for the specific state and pay the requisite registration fee.

5. After applying, wait for the state tax agency to review and approve the registration. Note that approval times can vary by state.

6. Once approved, the state will issue a sales tax permit with a unique identification number. As a business, you can use this number to report and remit collected sales tax.

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5. Collect Sales Tax

Once you determine a sales tax nexus and register for a sales tax permit, you can start collecting sales tax on the sales that you make in a state.

You can use sales tax calculation software or integrate your e-commerce platform with a sales tax automation service. Shopify provides merchants with a built-in tax calculator that allows them to set up tax rates based on their business location and the locations where they have physical or economic nexus. In addition to the tax calculator, Shopify also offers merchants tax reports to view the sales and tax information for their orders.

Besides using Shopify’s tax tools, merchants having a Shopify store can also integrate their store with various third-party tax apps and services that can help them automate the process of calculating and collecting sales tax. These apps often provide more advanced features, such as handling tax exemptions, managing tax holidays, and generating tax reports.

To start collecting tax on your e-commerce platform, you need to configure the tax settings on your e-commerce platform to reflect the correct sales tax rates for each state and local jurisdiction where you have nexus.

Furthermore, you must specify which products or services are taxable and which are exempt. Some states exempt certain items from sales tax, and your system needs to be configured accordingly.

Then, you must decide whether your pricing will be tax-inclusive (sales tax is included in the displayed price) or tax-exclusive (sales tax is added to the total at checkout). Accordingly, configure your eCommerce system. Also, you must customize your e-commerce platform’s checkout page to clearly display the sales tax amount and the total purchase price. This transparency helps build trust with customers.

Finally, you must implement a process for handling exemption certificates from tax-exempt customers. Your system should recognize valid exemptions and not charge sales tax on qualifying transactions.

6. Keep Accurate Records

It is crucial for you as a business to keep accurate sales tax records to ensure compliance with state and local tax regulations, facilitate the filing of sales tax returns, and provide documentation for potential audits.

7. File Regular Sales Tax Returns

Filing U.S. sales tax returns involves reporting the sales tax you’ve collected from customers to the relevant tax authorities and remitting the collected taxes. The process of filing sales tax returns can vary by state, and you need to follow the specific guidelines outlined by each state’s revenue or taxation department.

What Is A Sales Tax Return?

A sales tax return is a document that you as a business are required to file with the relevant taxing authority to report the sales tax that you have collected from customers during a specific period. This return provides detailed information on the total sales that your business has made, the taxable sales subject to sales tax, any exempt sales, and the amount of sales tax collected.

Do You Need To File A Sales Tax Return?

Every business with a sales tax license is required to submit a sales tax return, even if your business does not make any sales for the tax filing period.

Read: How To File Sales Tax Return In US For Your Online Store?

How Often Do I Need To File A Sales Tax Return?

The frequency of filing sales tax returns depends on various factors, including the rules and regulations of the specific state or local taxing authority. Generally, businesses are required to file sales tax returns regularly, and the filing frequency is often determined by the volume of sales or the amount of sales tax collected in a state.

For instance, if your business has significant sales volume or high sales tax liability, you may be required to file sales tax returns every month. This could apply to you if you are a large retailer or a business with a high volume of taxable transactions.

Then, some businesses fall into the quarterly filing category. This means that such businesses must file their sales tax returns every three months. The specific quarters may vary by jurisdiction.

In some cases, businesses with lower sales volumes may be required to file sales tax returns semi-annually, typically every six months.

Finally, businesses with very low sales volumes or those that qualify for special exemptions may be allowed to file sales tax returns annually, once a year.

Therefore, as a business, you need to understand the frequency applicable to your business. Remember that the state or local taxing authority will typically notify you as a business of its assigned filing frequency when you register for a sales tax permit. Additionally, you can check with the relevant taxing authority or refer to their guidelines for specific information on filing frequencies.

What Are The Sales Tax Returns Filing Schedules?

The due dates for filing sales tax returns vary by state and are determined by the specific rules and regulations of each state’s taxing authority. Additionally, the filing frequency assigned to your business, whether it’s monthly, quarterly, semi-annually, or annually, will impact the due dates for sales tax returns.

Typically, for states that require monthly filing, the due date is within the first few days of the month following the reporting period. Then, quarterly filers usually have due dates at the end of the month following the end of each calendar quarter. Furthermore, businesses filing sales tax returns semi-annually will have due dates typically several weeks or months after the end of the reporting period. Finally, the annual filers will have a due date that falls within a certain period after the end of the calendar year.

Note that the due dates may be subject to change, and businesses should regularly check with the specific state’s revenue or taxation department for the most up-to-date information. Some states may have different due dates for online filing and paper filing, and electronic filing is often encouraged or required.

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