Sales tax laws are constantly changing. It is sometimes hard for businesses to keep pace with these changing laws. In addition, state authorities are conducting more audits. As a result, assessments and fines to businesses are increasing substantially. As a small or mid business, you may be diligent in paying sales and use taxes, but it’s easy to miss something. Here are some common but incorrect assumptions that have resulted in errors calculating sales tax:
- Contrary to popular belief, internet purchases are often subject to sales tax
- Collecting improper sales tax without understanding the rates
- Failing to charge taxable items
- Failing to obtain an exemption certificate from the buyer
- Improperly constructed invoices (i.e., failing to indicate separate shipping or delivery charges)
Bottom line: if you’re not sure about the rules, ask – or let us do your sales taxes for you.