Determination & Remittance: The Two Sides of Tax

Achieving sales tax compliance is a complicated process that is growing more complex by the day. Every new regulation, law and rule must be accounted for or you run the risk of being audited. There are several steps in the process that must be accounted for and managed correctly.

First, sales tax determination is something that every business should fully understand. If you don’t know how to determine sales tax, you are already at a disadvantage in trying to meet and maintain sales tax compliance. You are likely to either over or under charge a customer which can lead to problems with regulatory authorities either way. So, take the time to understand this process and get it right from the beginning.

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Once you understand how to determine sales tax correctly, then comes the process of collecting and remitting sales tax to the appropriate regulatory authorities.

Armed with the knowledge of how to properly calculate and determine the proper amount of sales tax to charge, you can effectively process these transactions with confidence that you are doing so while in full compliance with regulatory standards.

However, collecting sales tax is only one half of the equation. To be fully compliant, you also must remit sales tax on time and use the proper forms and method. The remittance process can vary greatly state by state so it’s essential that you understand the regulatory requirements of each state you are operating in.

Some states will require paper-based submissions while others are completely electronic. Some will have multiple forms depending on the products or services you sell; others will have one standard form for all transactions. Understanding your requirements upfront will eliminate many headaches down the road.

To help you navigate this maze, we have partnered with our colleagues at LedgerGurus to provide this guide on how to successfully collect and remit sales tax. Or as we refer to it, manage both sides of your tax obligations.

We believe you will find the insights and links contained in this guide helpful as you look to better understand the process of determining sales tax obligations and managing the process through to successful remittance.

This guide is intended to inform and educate you as to the many different processes and methodologies that currently exist across the different states. When it comes to tax determination and remittance, there is no one size fits all approach, but there are some helpful resources available to you.