Sales Tax Registration: Register with the state tax authority in each state where you have nexus (physical presence or economic nexus).
Sales Tax Collection: Collect sales tax from customers on taxable sales, based on the applicable sales tax rate for the sale location.
Sales Tax Exemptions: Understand and apply sales tax exemptions for qualified purchases, such as those made by government agencies, non-profit organizations, or businesses purchasing for resale.
Sales Tax Returns: File periodic sales tax returns (monthly, quarterly, or annually) and remit the collected sales tax is sent to the state tax authority.
Use Tax: Collect use tax from customers who purchase taxable goods or services from out-of-state sellers and use them within the state.
Local Requirements
Local Sales Tax: Some states have local sales taxes, such as county or city taxes, that may need to be collected and remitted.
Local Use Tax: Local use tax may apply to purchases made from out-of-state sellers and used within a specific locality.
Other Considerations
Nexus: Understand the concept of nexus and determine if you have a tax nexus in a particular state.
Product Taxability: Determine the taxability of different products and services based on state-specific rules.
Recordkeeping: Maintain accurate records of sales, purchases, and tax payments.
Software and Automation: Utilize sales tax software or automation tools to streamline calculations, filing, and reporting.
AuraFinacc Solutions is an accounting firm offering customized financial solutions to U.S. businesses. Established in 2024, we focus on exceptional client service.
