Sales Tax Returns!
- Amazinggracebookkeeping
- May 23
- 3 min read
Filing Reminders / Information to file your Sales Tax Return.
What is a Sales Tax Return?
As a business owner you will began to learn that there are many filing deadlines. To name a few, your business income tax return, your payroll 941 tax returns, and sales tax returns. In this blog we will zone in on the sales tax return. This one can often get overlooked and is an important one to do before tax penalties start to pile up.
Definition: Sales Tax Return
“A sales and use tax return is a return that’s used to report on the sales and use taxes collected and remitted by your business to the government.” (https://www.avalara.com)
So, as business you will collect (charge your customers) sales tax on the product and goods and then remit (give back) the tax collected to the corresponding agencies( the state government and county that you collected the sales tax).
Who needs to file a Sales Tax Returns?
Every business that sells products and goods should be collecting sales tax.
Even some service based businesses may be required to file sales tax returns. For example, if you run a hair salon, a service based business the sale you make from coloring hair would not be subject to sales tax but the shampoo you sell would be because it is an actual good/product your selling.
Even if you had zero sales for a given month, you will still need to file a sales tax return.
*Always check with your local government for rules regarding sales subject to sales tax, as they do change from time to time.
How to file a Sales Tax Return.
The sales tax return normally reports the prior month sales and sales tax collected you had. For example, you would file your May sales tax return in June. Depending on which state you do business in it will depend on the due date on when to file.
Most sales tax returns are due on the 20th of every month. However, some are due on the 25th, 15th, 19th, 23rd or 30th.
I have included a link that shows a broad range of state sales tax return due dates. See below:
To double check, verify with your state rules. You should be able to find out your state’s sales tax return due date by visiting your state’s department of revenue site.
*Important to remember in addition to the state you may have to file a parish return or possibly a county/jurisdiction sales tax returns. This is very important because penalties can stack up fast if you forget to file both returns. They will both be due on the same day.
You can file directly on your state’s department of revenue site if you have an account. You will need to create a sales tax account in order to file. There are also third party software platforms that offer it as well. For example, salestaxonline.com offers business owners to file for Alabama, California, Colorado, Hawaii, Kansas, Louisiana and Texas. It allows you to file your state sales tax return, and the corresponding jurisdiction /parish return as well.
You will need to have your monthly profit and loss sales report (i.e. if your filing for the June 20th due date you will need the May sales report) and follow the instructions on the return and you are ready to start filing.
Overall, sale tax returns are very important. Don’t let them get your business in trouble for simply not filing them. Hope this helps when it comes time to file those sale tax returns!
** DISCLAIMER: Always check with your tax professional and your local state government for help. This blog is not intended to give you any tax or legal advice just a guide to help.
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