Sales and Use Tax Compliance Checklist - A Guide for Businesses
- Gabriela Contreras
- 4 days ago
- 1 min read
Sales and use tax compliance can feel overwhelming, but having a clear process makes all the difference. This practical checklist will help your business stay compliant, avoid costly mistakes, and confidently manage your tax obligations, whether you’re just starting out or looking to strengthen your current processes.
Key Takeaways:
Know Your Taxing Authority: Understand the state and local jurisdictions where your business operates and stay updated on tax rates, filing schedules, and registration requirements.
Determine Nexus in Each Jurisdiction: Regularly assess whether your business activities create tax obligations (nexus) in different states based on physical or economic presence.
Know What’s Taxable vs. Nontaxable: Review your products and services to determine what’s subject to sales tax, and avoid misclassifications that could lead to costly penalties.
Set Up a Reliable Sales Tax Collection System: Implement tax calculation tools and internal processes to collect the correct tax on every sale, whether online or in-store.
Keep Detailed Records: Maintain organized records of all transactions, tax collected, and exemption certificates for at least 3–5 years in case of an audit.
Review and Verify Exemption Certificates: Make sure you have valid, up-to-date exemption certificates on file for any non-taxed sales to avoid future liability.
Sales and use tax compliance doesn’t have to be intimidating. With the right systems and processes in place, you can stay compliant, minimize risks, and focus on growing your business with confidence.
Have questions? Contact us or book a session, we’re here to help!
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