Sales Tax Return- Document the Difference Between Total & Taxable Sales
733 بار بازدید -
3 سال پیش
-
Hi everyone!Your weekly tax tip
Hi everyone!
Your weekly tax tip is all about sales and use tax returns. Specifically, how to substantiate differences between what you report as total sales and what you report as taxable sales.
There can be several reasons why total sales and taxable sales are not the same. In Texas, common reasons include sales to out of state customers, exports, sales for resale, sales to tax-exempt customers, etc. Whatever the reason or reasons why, you must be able to document why there are differences.
You must also obtain and retain any documentation that you need to substantiate why an otherwise taxable item was not taxed. That means obtaining certificates from your tax-exempt customers, retaining invoices, shipping documents, including bills of lading, export documentation, etc.
Check out the requirements in the jurisdiction(s) where you engage in business. Sales and use tax compliance rules vary. What may work for Texas, may not be applicable in New York or California.
In addition to obtaining the appropriate certificate or other documentation, you must review them to make sure they are properly completed and comply with the requirements in your jurisdiction. Most taxing authorities provide guidance and instructions that will help you determine if the documentation that you have obtained is correct. Review the instructions that are associated with the various state issued forms. They will help you. Pay special attention to when you must obtain the applicable certificates and if there is a “by when” date (i.e., the certificate is not valid if obtained 90 days after the invoice date).
Also, research the statute of limitations is in the jurisdictions where you conduct business. You do not want to destroy or discard certificates after two years if the statute of limitations is three years.
That is your weekly tax tip.
Learn more about us on our website: https://thesalestaxsisters.com
Our self-help courses can be found at: https://thesalestaxsisters.thinkific....
Schedule an appointment with Mary at: https://thesalestaxsisters.com/meet-m...
Schedule an appointment with Stephanie at: https://thesalestaxsisters.com/meet-s...
You can also follow us on:
Facebook: Facebook: thesalestaxsisters
Instagram: Instagram: thesalestaxsisters
Your weekly tax tip is all about sales and use tax returns. Specifically, how to substantiate differences between what you report as total sales and what you report as taxable sales.
There can be several reasons why total sales and taxable sales are not the same. In Texas, common reasons include sales to out of state customers, exports, sales for resale, sales to tax-exempt customers, etc. Whatever the reason or reasons why, you must be able to document why there are differences.
You must also obtain and retain any documentation that you need to substantiate why an otherwise taxable item was not taxed. That means obtaining certificates from your tax-exempt customers, retaining invoices, shipping documents, including bills of lading, export documentation, etc.
Check out the requirements in the jurisdiction(s) where you engage in business. Sales and use tax compliance rules vary. What may work for Texas, may not be applicable in New York or California.
In addition to obtaining the appropriate certificate or other documentation, you must review them to make sure they are properly completed and comply with the requirements in your jurisdiction. Most taxing authorities provide guidance and instructions that will help you determine if the documentation that you have obtained is correct. Review the instructions that are associated with the various state issued forms. They will help you. Pay special attention to when you must obtain the applicable certificates and if there is a “by when” date (i.e., the certificate is not valid if obtained 90 days after the invoice date).
Also, research the statute of limitations is in the jurisdictions where you conduct business. You do not want to destroy or discard certificates after two years if the statute of limitations is three years.
That is your weekly tax tip.
Learn more about us on our website: https://thesalestaxsisters.com
Our self-help courses can be found at: https://thesalestaxsisters.thinkific....
Schedule an appointment with Mary at: https://thesalestaxsisters.com/meet-m...
Schedule an appointment with Stephanie at: https://thesalestaxsisters.com/meet-s...
You can also follow us on:
Facebook: Facebook: thesalestaxsisters
Instagram: Instagram: thesalestaxsisters
3 سال پیش
در تاریخ 1401/01/04 منتشر شده
است.
733
بـار بازدید شده