Sales Tax

What is Sales Tax?

Sales tax is a consumption tax imposed by the government on the sale of goods and services. It’s usually a percentage of the purchase price and is added to the total cost of products or services at the point of sale. Businesses collect customer sales tax and remit it to the appropriate tax authority.

What Does My Business Need to Pay Sales Tax On?

Businesses typically need to pay sales tax on tangible goods they sell, although the specific items taxed can vary by jurisdiction. Some services may also be subject to sales tax. The exact goods and services subject to sales tax depend on the laws of the state, county, or city where the business is located.

Can an Accounting Professional Help Me with Sales Tax?

Yes, accounting professionals can help businesses manage their sales tax obligations, especially those well-versed in tax regulations. They can assist in determining the appropriate sales tax rates, ensuring accurate collection and reporting, and filing sales tax returns on time. Accounting professionals can also provide guidance on nexus (the connection that creates a sales tax obligation for a business in a particular jurisdiction) and help businesses navigate the complexities of sales tax compliance, reducing the risk of errors and penalties.