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Recovering Sales Tax From Customers

Updated: Nov 6, 2023

We are going to discuss charging your customer sales tax after the sales transaction has been completed.  There are multiple options available to you if you discover that you didn’t charge sales tax correctly.  Check out the video below.


Key Takeaways:

  1. There are several things you can do after discovering that sales tax was not charged correctly, which normally occurs after an audit.

  2. In Texas, business owners can pay the deficiency or request that the customer reimburse them for the sales tax.  The sales tax is the debt of the purchaser.

  3. Requesting reimbursement can be tricky because not everyone will reimburse you and it can sour business relationships.

  4. It is best to charge the correct sales tax upfront to avoid these issues.  


 

Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.



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