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Saturday, January 23, 2021

Sales Tax Filing

 


**This is a sponsored post which I will be compensated for**

 

As you know every year you have to do sales tax filing as an online business and if your business sells a product or provides a service that is taxable, and if you are located in a sales tax state, you will need to set up a process to collect and pay sales taxes and file sales tax returns periodically.


Sales taxes are, frankly, a mess. There are many taxing localities involved, each with its own tax rate and list of taxable products and services. If you have a tax presence in different states, you may have to collect different taxes on different items. And if you sell online, trying to figure out if you have to collect sales tax from customers in many states becomes almost difficult to manage. Begin by determining whether you must collect sales taxes in a specific state. If you sell online, you will also need to check to see if you need to collect and pay sales tax on these online transactions in your state. Register with your state's taxing agency. If you sell in more than one state, you will need to register in each state. Your state will also have information on what products and services are taxable. Determine the sales tax rate or rates you must charge. It has been estimated that there are 11,000 tax collection entities in the U.S., so determining and collecting sales tax can be very complex. Set up your processes to collect sales tax from your customers. You might be selling online, at a retail store, or at outside venues like flea markets and events.  Collect sales taxes from your customers. Gather your records for all your sales and taxes through your business accounting system.  Send reports to your state and, of course, pay sales taxes you have collected to your state. 

 Your requirement as a business to collect sales taxes from your customers depends on these factors: 

If you are a taxable entity in your state 

If the products or services you sell are taxable in that state

If you sell online, you will need to look up the specific requirements for collecting sales taxes as an online seller in each state.

After you have determined that you must collect sales tax in a specific state, go to the website of your state's taxing authority to register for your sales tax permit. The permit will allow you to collect, report, and pay sales taxes on taxable items. 

 It might be just as easy to find a company to help with your sales tax issues and the sales tax filing so you do not have the headache of trying to figure it all out as they will for you and some services they offer as a transparent company is conducting themselves openly and candidly, speak honestly, be accountable for all they do but offering commitment and obligation, provide the highest standard of excellence and adhere to the highest standards of behavior, conduct, and service. Demonstrate a servant attitude to all the people God places in our lives.



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