Today’s tax tip is about sales. Specifically categorizing sales correctly and how sales tax apps can help.
Key Takeaways:
All sales fall in one of two buckets. The sale is either taxable or nontaxable.
If a sale is categorized as taxable, it is important that you know whether you are required to register to collect sales and use tax in a jurisdiction, the taxability of associated fees, the appropriate tax rate, etc.
If the sale is not taxable the reason why must be documented.
Depending on the complexity of the business, number of locations, etc., automation may be something that should be considered.
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.