When it comes to dealing with sales taxes, the biggest problems seem to be reserved for sellers, who generally are responsible for seeing that the taxes are timely paid to the state. So, if your business happens to make taxable sales of property or services, you need to be prepared to handle the following obligations:
- Registration: the first thing you should do is to secure sales permits for each of your business sites from which you'll be making taxable sales.
- Collections: because you usually collect sales taxes from your purchasers, you'll likely have to start accounting for your sales taxes with your first taxable sale. Part and parcel with collecting the tax is knowing when you needn't collect because purchasers have asserted valid claims for exemptions.
- Payments and returns: once you've collected the tax, your final step is remitting the taxes with the appropriate returns to the appropriate tax agencies.