Sales tax filing is one of those administrative hassles that rolls around just infrequently enough that you forget just exactly how you accomplished it last time.
When your sales tax filing due date rolls around just remember these 4 tips and you should be good to go!
Know your sales tax filing due date
Unlike with income tax when April 15th is “the big day,” there is no single sales tax filing due date. Each state sets its own
sales tax filing due dates.
For example, if you file sales tax in Georgia, your sales tax filing due date is the 20th of the month after the taxable period. But if you file sales tax in California, your sales tax filing due date is the last day of the month after the taxable period.
Double check your sales tax filing frequency
You’ll find that you’re required to file sales tax either monthly, quarterly or annually. How often you file usually depends on your sales volume, with the more sales you make in a state the more often you file.
However, this is the time of year when states tend to make changes to your sales tax filing accounts. If your sales volume has risen or fallen over the past year, the state (or states) where you file sales tax may change how often they want to hear from you. Be on the lookout for a letter from your state’s taxing authority assigning you a new sales tax filing frequency.
Always file a return
File a sales tax return by your due date, even if you didn’t collect any sales tax from buyers in that state over the taxable period. States consider a sales tax filing to be a “check-in”. Failing to file can result in a penalty or even the cancellation of your sales tax permit.
Don’t discount sales tax discounts
A little more than half of the U.S. states with a sales tax realize that asking merchants to act as tax collectors is a burden. These states allow you to keep a very small percentage of the sales tax you’ve collected, as long as you file on time. This usually only amounts to 1-2% of the sales tax you’ve collected, but every little bit counts. And it’s nice to be (even slightly) rewarded for your efforts!
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PayPal and TaxJar do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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