Sales tax basics
How sales tax works across the US: when you must collect, how to register and file, and how to fix past mistakes.
19 guides in this topic
- How US sales tax works: a guide for small businesses5 minute readHow US sales tax works for small businesses: state and local rates, nexus, permits, collecting and filing, exemptions, marketplace sales and use tax.
- Economic nexus explained: when out-of-state sales create a tax duty4 minute readWhat economic nexus is, the usual $100,000 threshold and the states that differ, how states measure it, and what to do once you cross a threshold.
- Physical nexus vs economic nexus2 minute readThe difference between physical and economic nexus for sales tax: what creates each, how long they last, how they combine, and what online sellers should track.
- How to get a sales tax permit2 minute readHow to get a sales tax permit: when you need one, the information states ask for, applying online, fees and deposits, and what you must do once registered.
- How to file a sales tax return2 minute readHow to file a sales tax return: filing frequency, gross and taxable sales, deductions for exempt and marketplace sales, local tax and zero returns.
- Sales tax vs use tax2 minute readThe difference between sales tax and use tax, when a business owes use tax on its own purchases, how to report it, and the common situations that trigger it.
- States with no sales tax: what sellers need to know2 minute readThe five states with no statewide sales tax, the local sales taxes and business taxes that still apply there, and what that means for online sellers.
- Origin-based vs destination-based sales tax1 minute readOrigin-based vs destination-based sales tax: which rate applies to in-state and out-of-state sales, which states use origin, and remote sellers.
- Alaska local sales tax for remote sellers3 minute readHow Alaska's local sales tax works for remote sellers: the ARSSTC, the $100,000 threshold, registration within 30 days, monthly returns, marketplaces.
- Sales tax on services: which states tax them3 minute readWhich states charge sales tax on services: states that tax most services, services commonly taxed elsewhere, professional services and sourcing.
- Sales tax on software, SaaS and digital products3 minute readHow states tax software, SaaS and digital products: prewritten vs custom software, states that tax SaaS, user-location sourcing and nexus.
- Sales tax on shipping charges: how states differ3 minute readWhether sales tax applies to shipping and handling: states that tax delivery, states that exempt separately stated shipping, handling fees, mixed orders.
- Voluntary disclosure agreements: fixing past-due sales tax3 minute readHow a sales tax voluntary disclosure agreement works: who qualifies, the limited lookback, penalty waivers, anonymous and multistate approaches.
- Collected sales tax but didn't remit it: what happens next2 minute readWhat happens if you collected sales tax but did not pay it to the state: trust fund rules, personal liability for owners, penalties, and how to fix it fast.
- Sales tax exemptions: who qualifies and the certificates to keep2 minute readWho qualifies for sales tax exemptions and which certificates sellers keep: resale, nonprofit, government and manufacturing, multistate forms and good faith.
- Streamlined Sales Tax registration explained2 minute readHow Streamlined Sales Tax registration works: the 24 member states, registering in several states at once for free, and certified service providers.
- Sales tax filing frequency: monthly, quarterly or annual2 minute readHow states set your sales tax filing frequency: monthly, quarterly or annual, due dates, prepayments, zero returns and frequency changes.
- Sales tax audits: what triggers them and how to prepare3 minute readWhat triggers a sales tax audit, how the audit works, sampling, the records auditors ask for, exemption certificates, use tax and preparation.
- When and how to cancel a sales tax permit2 minute readWhen to cancel a sales tax permit, such as closing, leaving a state or dropping below nexus, filing the final return, and the cost of not cancelling.