We all remember what our good friend Benjamin Franklin said about life, right?

“… but in this world nothing can be said to be certain, except death and taxes.”

No, but on a serious note…

There’s no need to panic. It’s just Sales Tax. And do you know the best part of all? We can help you!

Sheffield Bookkeeping can assist your small business with every step of the process including applying for a Sales Tax Permit, filing reports, and helping you submit regular payments.

In case you are not familiar or are just getting your business off the ground, here are some answers to frequently asked questions about Sales Tax:

Do I need to file a Sales Tax report?

Are you engaged in business in the state of Texas and sell goods or services?  If you answered yes, you owe the Comptroller a regular sales tax report and payment.

How do I apply for a Sales Tax Permit?

Applying for a permit is as easy as using the Texas Comptroller of Public Accounts website. If you prefer filling out forms, you can also obtain a paper copy online and mail it in.

What is required once I have a permit?

You will need to post your Sales Tax Permit at your place of business and then start collecting sales tax on all applicable goods and services. In intervals specified by the Texas Comptroller, you will need to submit timely reports and payments to the Texas Comptroller.

When is the report and payment due?

Your reports are due either annually, quarterly, or monthly depending on the volume of tax liability. The state will let you know the requirement you must meet after your Sales Tax Permit is approved. Once your interval is assigned, your report is due on the 20th of the month following your reporting period.

Here is an example of quarterly filing due dates from TaxJar:

2018 Texas Quarterly Sales Tax Filing Due Dates

What happens if my report and payment are late?

Penalties are issued immediately following the due date if a report isn’t submitted. A $50 penalty is assessed on late filings if you have a Sales Tax Permit even if there was no tax due for that reporting period. Penalties can grow very quickly as they are charged at an increasing percentage depending on how late the report was filed. Past-due taxes are also charged interest starting at Day 61.

How do I submit a report and payment?

Depending on the amount of taxes you paid in the last fiscal year, there are multiple ways to submit reports and payments. Refer to the Texas Comptroller of Public Accounts website for more information. Often times, the easiest way to report and pay is through the Texas Comptroller’s eSystems program.

We understand that as a business owner, your time is valuable and better spent growing your business than submitting tax reports. Call us today for a free consultation so that we can take a few things off your plate!

Sources:

U.S. Small Business Administration – https://www.sba.gov/blogs/sales-tax-101-small-business-owners-and-online-retailers

Texas Comptroller of Public Accounts – https://comptroller.texas.gov/taxes/sales/

Avalara – https://www.avalara.com/trustfile/en/blog/do-i-have-to-report-my-sales-tax-even-if-i-dont-owe-any.html

TaxJar – https://www.taxjar.com/states/texas-sales-tax-online/#when-are-texas-sales-tax-returns-due