Sales Tax Exemptions Explained!

by | Aug 14, 2022 | General Business, Stephanie's Wisdom, Uncategorized | 0 comments

When making exempt sales to exempt, it is important that you obtain all appropriate documentation required to substantiate the tax-free nature of the sale. On other words, if your jurisdiction requires you to obtain a certificate  or any other documentation, obtain the documents per their requirements.

Key Takeaways:

  • Exempt organizations can include governmental agencies including the federal government, state governments, etc.
  • Other exempt customers can include educational, religious, and charitable organizations.
  • When making sales to exempt organizations, it is important that you obtain all appropriate documentation required to substantiate the tax-free nature of the sale.
  • Exemptions are based on what is being sold and how it is being used.
  • Sales and use tax exemptions are narrowly construed.
  • Research which sales and use tax exemptions are applicable.

More Tips in The Sales Tax Sisters Academy

Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.

More Tips in The Sales Tax Sisters Academy

Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.

Sales Tax YouTube Channel Art 28

Different Jurisdictions, Direct Sales & Use Tax Rules

While most business owners know the importance of understanding their sales and use tax responsibilities in the jurisdiction where they first start their business, it is important to remember to focus on the various sales and use tax laws when making sales into different jurisdictions.

Sales Tax YouTube Channel Art 23

Do You Have To Register? Sales & Use Tax Nexus Quiz

We are excited to announce the creation of a quiz to help you address the question of whether you should register to collect sales and use tax. It is five questions that can help you start asking the right questions about your sales and use tax compliance responsibilities and whether your company may have a sales and use tax registration requirement in more than one jurisdiction. We hope you enjoy the quiz!

Sales Tax YouTube Channel Art 16

Recovering Sales Tax From Customers

We are going to discuss charging your customer sales tax after the sales transaction has been completed. What should you do if you discover (usually in a sales tax audit) that you didn’t; charge sales tax on a taxable transaction or you did not charge the correct sales tax.

Copy of Youtube Video Thumbnail Templates 6

Interim Reviews Can Keep You Sales Tax Compliant!

As your business changes or expands, or you make large purchases, interim reviews can help ensure that you are sales and use tax compliant. Once you determine that you owe additional tax or that you should charge sales tax on sales, you can make a plan to address the issue.

Sales Tax Reconciliation YouTube

Do Your Sales Tax Accrual Account Reconciliations!

When most people think of reconciliations, they focus on bank statement reconciliations. While they are important, if you are ever audited, one of the first things that the auditor will do is reconcile your sales tax accrual account.

Bank Reconciliations

The Dangers of Combining Sales & Non-Sales Related Deposits

Auditors routinely request bank statements as part of their document request.
If you are commingling personal deposits and business deposits, you must be able to identify and substantiate which deposits are not related to your sales.

Sales Tax Credits

Beware: 4 Things about Sales Tax Returns and Unapproved Sales Tax Credits

Sales tax credits can are either valid or they are not.  Period.  What is an unapproved sales tax credit?  How does this topic impact the compilation of a correct sales and use tax return?  Can you say “TROUBLE?”

Sales Tax TX Construction YouTube Channel Art 5

Texas Sales Tax & Construction – Understanding Contract Types!

If you are a contractor or subcontractor with construction projects in Texas, there are several factors that you must determine to understand your sales and use tax responsibilities. One of these factors is contract type.

Sales Tax Reconciliation YouTube

Sales & Use Tax Compliance- Do Your Reconciliations!

In this video, we discuss the importance of other types of reconciliations, including reconciling your sales tax accrual account. If you are ever audited, one of the first things that the auditor will do is reconcile your sales tax accrual account to make sure that you are remitting what your own accounting records reflect should be remitted.

Sales Tax Nexus

Sales Tax Nexus- What Sales Tax Registration Means

Sales tax registration may lead to other registration responsibilities. It is important to not only know when sales and use tax nexus is triggered but to also know that registering to collect sales tax may lead to other registration requirements.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *