Does your business need to be paying sales tax?
Only if you sell products!
Businesses that sell services do not collect and remit sales tax.
So, what do you need to do if you are a product business that needs to file sales tax?
The simple answer is, there is no simple answer.
Like most queries concerning taxes, there is not a one size fits all solution.
How much you pay and when you pay will vary from state to state.
Below are some potential risks that could cause changes to your sales taxes.
Business based risk factors
• Expanding into new markets
• New products
• Changing your production or distribution
So, when are your sales taxes due? This may be done semi-annual, quarterly, or monthly depending on your volume and your state. Once again, this varies state by state and your volume.
So this is your reminder, if you are selling a product double check that you are charging and paying your sales tax.
Want more accounting tips and tricks or help in understanding your financials? Download our financial goal setting worksheet.
For more information on sales taxes in different states, check out the links below!