Running a business can already be exhausting, but the legal obligation of getting your seller’s permit is another obstacle you must tackle. With different fees and requirements in each state, it’s easy to get lost in the process while trying to apply for one.The price of a seller’s permit varies across states. Most states offer it for free, while others charge a registration fee between $5 to $100.Now, as fickle as sales tax rules can be, these fees are also subject to change at any time. So before you jump into an application form or process, let us help you prepare by giving you the detailed breakdown of each state’s seller’s permit costs.
Key Takeaways
A seller’s permit may also be referred to as a “sales tax permit” in most states. It also goes by other alternative names, such as sales tax license or vendor’s license.
The process of renewing your seller’s permit varies depending on a state’s ruling. Some states only charge a one-time registration fee, while others may impose a renewal fee.
Your business registration with the Secretary of State’s office is not the same as registering for a sales tax permit. Generally, registering for a seller’s permit is handled by a state’s taxing department, often the Department of Revenue.
A seller’s permit validity depends on a state’s discretion. Some states may revoke an inactive sales tax account and require you to register again and pay the fee again.
Paying for your seller’s permit is not always the last step of your registration. You must still wait for your application’s approval until you receive your permit.
Sellers Permit in Different States
Before we dive into each state’s varying costs for permits, let’s clarify the distinction between a “sales tax permit” and a “seller’s permit.” As briefly mentioned above, a seller’s permit also goes by different names in other states. Thus, regardless of their distinct names, both documents function the same way and serve the same purpose. To guide you further, here’s a list of alternative terms that some states use when referring to a seller’s permit:
Sales Tax Permit
Sales Tax License
Business License
Retailers License
Vendors License
Certificate of Authority
Transaction Privilege Tax License
NOTE: “Seller’s Permit” should also not be used interchangeably with “Reseller’s Permit” as they are usually two different licenses with distinct purposes in some states.
How much does a Seller’s Permit Cost in Each State?
Here is a table stating how much a seller’s permit costs in each state:
Alabama sales tax license is valid until cancelled, revoked, or there are changes in your business info.
Alaska
n/a
Alaska does not charge any sales tax, but some cities may impose a local sales tax. Therefore, some jurisdictions in Alaska may require businesses to register for a local permit.
Online registration: AZTaxes.gov.Other application methods are also available.Arizona Transaction Privilege Tax (TPT) License is valid until cancelled or revoked.
Online registration: Arkansas Taxpayer Access Point (ATAP) Paper application method is also available. The state charges a non-refundable registration fee.
Online registration: Colorado Revenue Online Paper application method is also available. The registration costs vary depending on the year your license expires. A $50 refundable security deposit may also be required. Renewing a Colorado sales tax license also costs $16 for each physical location your business has in the state.
Online registration: myconneCT The cost is a one-time registration fee. Permits are renewed automatically every 2 years for actively compliant businesses. The renewed permit is mailed for free.
Online registration: Florida Business Tax Application. Paper application method is also available. Florida Certificate of Registration is valid for 1 year, but is automatically renewed if your business stays active in the state
Online registration: Georgia Tax Center (GTC) Georgia sales and use tax registration renews automatically for active businesses. Other fees only apply to specific merchant licenses.
Online registration: Hawaii Tax Online(HITAX) Other application methods are also available. Hawaii charges a one-time general excise tax license fee. Renewal is only required for other specific merchant licenses.
Online registration: Idaho Business Registration System Paper application method is also available. Idaho permits remain valid until cancelled, revoked, or there are changes in your business info.
Online registration: MyTaxIllinois. Paper application method is also available. Illinois Certificate of Registration renews automatically for actively compliant businesses. Other fees only apply to specific merchant licenses.
Online registration: Indiana Business Roadmap (INBiz) Paper application method is also available. Indiana Registered Retail Merchant Certificate is valid for 2 years and renews automatically for active businesses in good standing.
Online registration:GovConnectIowa Paper application method is also available. An Iowa sales and use tax permit is valid until cancelled or revoked by the Iowa DOR.
Online registration: Kansas Department of Revenue Paper application method is also available. Kansas sales and use tax permit is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Kentucky Online Gateway Kentucky sales and use tax permit is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Louisiana Taxpayer Access Point (LaTAP) Louisiana direct marketer permit is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Maine Tax Portal (MTP) Maine retailer certificates remain valid until cancelled, revoked, or there are changes in your business info.
Online registration: Maryland Tax Connect Paper application method is also available. Maryland sales tax licenses remain valid until cancelled, revoked, or there are changes in your business info.
Online registration: Michigan Treasury Online Michigan sales tax licenses are valid from January to February of the tax year listed on the license. Licenses renew automatically for actively compliant businesses. Renewed licenses are mailed for free.
Online registration: MN E-ServicesPhone application is also available, call: 651-282-5225 or the toll-free 1-800-657-3605 Minnesota sales tax licenses remain valid until cancelled or revoked.
Online registration: Mississippi TAP (Taxpayer Access Point) Mississippi sales tax permits remain valid until cancelled, revoked, or there are changes in your business info. Some businesses are required to post a security bond.
Online registration: MyTaxMissouri Paper application method is also available. Missouri retail sales tax licenses remain valid until cancelled, revoked, or there are changes in your business info. A security bond is required for new businesses.
Online registration: Centurion Paper application method is also available. Nebraska sales and use tax permits remain valid until cancelled, revoked, or there are changes in your business info. Every business location requires a separate permit.
Online registration: Nevada Tax Center Paper application method is also available. Nevada sales tax permits remain valid until cancelled, revoked, or there are changes in your business info. A security deposit is required for businesses having a tax collection of more than $1,000.
Online registration: New Jersey’s Online Business Registration Paper application method is also available. New Jersey Certificate of Authority is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Taxpayer Access Point(TAP) Paper application method is also available. New Mexico business tax identification numbers remain valid until cancelled, revoked, or there are changes in your business info.
Online registration: Business Express NY New York Certificate of Authority is valid until cancelled, revoked, or there are changes in your business info. The state sends a notice of renewal in case you need to update your permit.
Online registration: North Carolina Department of Revenue (NCDOR) Paper application method is also available. North Carolina Certificate of Registration is valid until cancelled, revoked, or there are changes in your business info.
Online registration: North Dakota TaxPayer Access Point (ND TAP) The permit is valid until cancelled, revoked, or there are changes in your business info
Online registration: Ohio Business Gateway Paper application method is also available. Ohio vendor’s license is valid until cancelled, revoked, or there are changes in your business info. Separate permits are required for each in-state business location.
Online registration: Oklahoma Taxpayer Access Point (OkTAP) Businesses must pay an additional $10 for each physical location in the state. Renewal can be done through OkTAP.
Online registration:RI Tax Portal Paper application method is also available. Rhode Island retail sales permits are valid from July 1 to June 30 of the following year. Renewals must be submitted annually every February 1st.
Online registration: MyDORWAY South Carolina retail licenses remain valid until cancelled, revoked, or your business location has changed. Every location requires a separate retail license.
Online registration: South Dakota Tax License Application South Dakota sales tax licenses remain valid until cancelled, revoked, or there are changes in your business info.
Online registration: Tennessee Taxpayer Access Point Tennessee business licenses remain valid until cancelled, revoked, or there are changes in your business info. The separate $15 charge for in-state sellers applies to each business location.
Online registration: Texas Comptroller of Public Accounts eSystems Paper application method is also available. Texas permits remain valid until cancelled, revoked, or there are changes in your business info. Sellers may have to post a security bond.
Online registration: Utah Taxpayer Access Point (TAP) Other application methods are also available. Utah sales and use tax license is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Virginia Tax Online Services for Businesses Paper application method is also available. Virginia sales tax certificate of registration is valid until cancelled, revoked, or there are changes in your business info.
Online registration: Washington State Department of Revenue Paper application method is also available. The cost for a Washington business license varies depending on what your business needs; local fees may also apply. The license is valid for 1 year unless cancelled, revoked, or there are changes in your business info.
Online registration: MyTaxes (WVTax) Paper application method is also available. Transient sellers are required to post a security bond, deposit, or letter of credit. West Virginia business registration certificate is valid until cancelled, revoked, or there are changes in your business info.
Every 2 years
(Automatic renewal
for active businesses)
Online registration: Wisconsin Department of Revenue Paper application method is also available. Wisconsin Business Tax Registration (BTR) is a one-time fee, and any additional permits are free. A security deposit may be required. The registration is valid for 2 years and renewed automatically unless cancelled, revoked, or there are changes in your business info.
Online registration: Wyoming Internet Filing System for Business (WYIFS) Paper application method is also available. Besides the one-time license fee, businesses may have to pay other registration fees. Wyoming sales and use tax license is valid until cancelled, revoked, or there are changes in your business info.
RENEWAL NOTICE: Renewal is typically not required, but only if your business has no information changes. You must update your sales tax account and renew your permit’s crucial details, such as changes in the business structure, address, contact information, or ownership.NOTE: The costs listed above are subject to change at any time. Feel free to bookmark this page and check back whenever you’re in doubt! You can also follow us on LinkedIn or Facebook for important sales tax updates.
States Without Seller’s Permit Fees
To help you scan through the state-by-state guide above, here’s a compilation of states that do not charge any fees when applying for a sales tax permit:
Alabama
California
Florida (online registration only)
Georgia
Idaho
Illinois
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio (out-of-state sellers only)
Pennsylvania
South Dakota
Tennessee (out-of-state sellers only)
Texas
Utah
Vermont
Virginia
Apart from these 31 states that charge no fees for a seller’s permit cost, there are also 5 states without sales tax, known as the NOMAD states. These states also do not require a permit and therefore, charge no fees.
Alaska
Delaware
Montana
New Hampshire
Oregon
However, local permits may be required for Alaska.
Seller’s Permit vs Business Registration
For sole proprietors, partnerships, and LLCs whose business is already registered at the Secretary of State’s office, you may wonder why you still need to go through another application for a sales tax permit in most states. Generally, a state’s taxing authorities, mainly the revenue department, handle the registration for sales tax collection. That’s why there is a separate process when applying for a permit.To summarize, your business registration is done to operate legally as a business entity in a state. Meanwhile, your seller’s permit application is required for the sake of authorizing your business to collect sales tax from your customers.
Hidden Costs of Getting a Seller’s Permit
While many states offer free registration and permits, it does not always come without hidden fees. For instance, states like California, Missouri, and Texas are moving towards a higher security deposit requirement for businesses with higher sales tax liabilities as well.Another example is in Nevada, where a seller’s permit only costs $15. However, the registration costs for legalizing your standard business operations in Nevada are between $200 to $500, depending on your business type.NOTE: In some states, like Washington, additional fees from local permits may also apply.
Why do you need a Seller’s Permit?
Other than legally authorizing your business to collect sales tax in the state, you also need a seller’s permit to take advantage of these 3 benefits:
Tax-Free Inventory Purchases (Resale Exemption) – Many states allow a sales tax exemption on qualified resale purchases. If you are buying goods to resell them later on, you don’t have to pay sales tax if you provide a valid resale certificate. Resale certificates typically require an active sales tax permit number. By having a seller’s permit, verifying yourself as a legitimate reseller is easier. With this, you can claim your sales tax exemption for qualified resale purchases.
Safety Measure for Audits – By showing state authorities that you willingly comply with their regulations by being a registered seller, you actively prevent the risk of triggering an unwanted sales tax audit. >>>>But for clarification, a sales tax audit could still occur at any time. However, having a seller’s permit can still act as a safety measure by proving you are a legitimate and authorized merchant or business in the state.
Better Credibility – By having your document on display if you have a physical store, most customers will understand that you are authorized to collect sales tax. In addition to that, being a registered seller also adds credibility to your business’s reputation.
How to Apply for a Seller’s Permit
The application process for a seller’s permit is different in every state. Typically, registration is done online, through a state’s specified website. You may find the link to each state’s online application page in the table in the upper section of this blog.But to ensure you don’t leave empty-handed, we prepared a summary of each state’s standard online application process.
Step 1: Verify your nexus –First, you must know where you have a sales tax nexus. If you need help tracking your nexus, you can take advantage of our free nexus analysis through our demo.
Step 2:Prepare the standard required documents
Your basic business information, including your SSN or FEIN and NAICs
Your business’s estimated monthly sales and yearly tax liability in the state
Your business’s co-owners, partners, or officers’ names, addresses, and IDs
Step 3: Go to the state’s designated registration website – Once you know where you have a nexus, you can use our table in the upper section of this blog for guidance. or free through the state’s designated website.
Step 4: Begin the registration process – Look for the “Register Your Business” or any similar option.
Step 5: Fill in the required fields – Follow through the prompts to complete the process and fully set up your account.
NOTE: While the steps may vary across states, this guide is simply a generalized process to help you get started. For a more in-depth guide on how to apply for a seller’s permit in a specific state, you can read our state guides.
Receiving your seller’s permit
During your registration process, most state websites should prompt you to choose your preferred mailing address. Generally, you should receive a physical copy of your sales tax permit within 7 to 14 business days. However, some states take longer to approve your application. Therefore, receiving your permit may take more time. Meanwhile, other states will also immediately send you a digital copy to the email address you provided. Alternatively, some state websites have an option where you can access the downloadable document of your permit, which you can print and use temporarily until the original physical copy arrives.NOTE: Your permit should contain your sales tax account’s registration number. This is the number you’ll often need, especially when completing resale certificates to claim exemptions.Moreover, if your business has a physical store, you must keep your permit displayed at all times as part of your compliance duties.
How to Manage Your Seller’s Permit for Compliance
After receiving your seller’s permit, you may wonder what you should do next. To help you stay compliant with varying state sales tax rules, here are 5 important tips to manage your seller’s permit in any state.
Take note of your filing schedule and due dates – Your permit often indicates the filing schedule assigned to you by the state. Typically, most businesses are assigned either a monthly or a quarterly schedule. To avoid penalties and ensure you file your sales tax returns on time, knowing your schedule is important.
Keep records – Recordkeeping is a wise practice to prevent any possible audit risks. Always have secured copies in case of unforeseen events that may affect your permit’s condition. For example, some state websites are inaccessible when undergoing system maintenance. During that time, you won’t be able to access your online records on the state website. As a preventive measure, keep copies that you can also access offline.
Learn the rules – Depending on the state you operate in, sales tax rules may vary. For instance, some states may revoke your permit if you incur some sales tax penalties. Compliance doesn’t stop after application; you must also ensure consistency to avoid any hassle for your business.
Renewal and Validity Period of Seller’s Permit in Each State
In relevance to the compliance tips above, you must also know that the validity period of your seller’s permit typically depends on the state’s discretion as well. Most of the time, these permits have no expiration date and will remain valid indefinitely. This usually applies to states that allow automatic renewal of permits as long as there are no significant changes in your business’s structure or ownership.Meanwhile, other states require you to renew your permit after a specific amount of time. IMPORTANT: If your permit expires, states may require you to re-register and pay the registration fee once again, as it counts as a new, separate application. Before a permit expires, some states would send you a notice first.
States with automatic seller’s permit renewal
Connecticut
Florida
Georgia
Illinois
Indiana
Michigan
NOTE: Other states generally do not require renewal, and that means your permit remains valid unless updates are needed.
States that may require periodic permit renewal
Alabama
Arizona
Colorado
New York
Oklahoma
Pennsylvania
Rhode Island
Washington
Wisconsin
How to Cancel your Seller’s Permit
If your business stops operating while you still have a nexus, most states offer an option to close your sales tax account. Cancelling your permit is important to avoid accidental sales tax penalties. However, you must follow the state’s requirements before you’re fully free from your sales tax duties. Typically, states will ask you to:
File a final sales tax return
Halt all sales and sales tax collection activities
Write a formal request letter and wait for approval
Submit valid documents that prove your business’s closure
Return the original physical document of your sales tax permit
NOTE: In general, most “request letters” can be submitted online through the state’s user portals. However, there are states that may require a handwritten letter instead.
Let Us Handle Your Seller’s Permit Registration
Applying for a seller’s permit can be overwhelming and hectic for online retailers receiving orders nationwide. With varying costs, requirements, and steps, ensuring a smooth process is difficult if you’re already busy running your business.Book a free call and talk to our CEO to understand TaxHero’s all-inclusive full-stack sales tax solution, and we’ll get your seller’s permit in any state right away.
Frequently Asked Questions
1. How much is a resale certificate?+
Generally, resale certificates are free of cost and can be downloaded for free from a state’s respective website.
2. How to obtain a vendor’s license?+
Obtaining a vendor’s license depends on a state’s required process. The standard procedure involves registering your business through a state’s designated website. If available, an in-person application may also be an option for some states.
3. How much does a seller’s permit cost in Florida?+
A Florida seller’s permit is free when registering online, but costs $5 if you apply by mail.
4. How much does a seller permit cost in California?+
A California seller’s permit is free, but it may require certain businesses to pay a security deposit.
5. Are sales tax and sellers permit the same?+
A sales tax permit and a seller’s permit are generally the same documentation across states. However, some states may use a different term for these permits.
Did you fail to file and pay your sales tax on time? Are you curious about sales tax penalties? You must be curious about what happens when a business doesn’t pay sales tax. But as an ecommerce business, it is your duty to understand the consequences of not following sales tax rules. Otherwise, the repercussions might get unnecessarily too taxing for you (no pun intended). All actions (and, for that matter, inactions) have consequences, so always ensure you are up-to-date in filing, collecting, and remitting sales tax. Read this article to learn more about how you can avoid being non-compliant.
What are the Common Ways Businesses Fail Sales Tax Rules?
Here are some ways ecommerce businesses stumble with the sales tax rules:
Not registering for a seller’s permit once economic nexus has been met – You need to register for sales tax in every state where you have met nexus. If you don’t register, you will become non-compliant with the state laws and regulations and could be fined with sales tax penalties.
Failing to collect sales tax – you must ensure that you charge sales tax to all parties and on all taxable products or goods and services in states that you meet the nexus requirements.
Charging the wrong tax rate – Sales tax varies from state to state, with other jurisdictions also collecting local sales tax. You have to make sure you know the different applicable rates and charge the correct amount.
Not filing your sales tax returns on time – Every state has a specific due date for sales tax returns based on the frequency of the return. It is the business’s responsibility to file sales tax returns on time.
Failing to pay sales tax – If you don’t remit the sales tax you collected to the respective state governments, you might face unfortunate consequences like paying fines or, in extreme cases, legal litigation for civil or criminal offenses.
What are the Possible Outcomes if a Business Fails to Collect, Report, and/or Remit Sales Tax?
Here are some of the ways failure to report and/or remit sales tax may cost your ecommerce business:
Accumulate Tax Debt
Before anything else, you should know when your business meets economic nexus in a state, as this would be the baseline that the state governments will use to determine how much your tax obligations are. Think about it this way: your ecommerce company had already met economic nexus in October 2018 in the state of Wisconsin. Then, you are already required to apply for a seller’s permit and begin collecting sales tax. But if, for one reason or another, you only started to collect in June 2022. You will also have to pay the total sales tax amount, including penalties and interests that may apply, from your own pocket. That’s why if you don’t start collecting sales tax from the time you meet economic nexus, you are, in fact, jeopardizing your business’ funds. And if you continue to neglect this, the debt can grow bigger and bigger until it becomes challenging to pay it off.
Penalties and Interests
As state governments are always quick to assume “willful neglect” of businesses that fail to submit and/or remit their sales tax dues, they may impose penalties for non-compliance with sales tax rules. The penalties may include fines, additional interests on top of the late charges, and even suspension of business permits in extreme cases, depending on the severity of the offense.
State Audit and Back Taxes
If you keep delaying compliance with your sales tax obligations, sooner or later, you may receive an audit from state governments or other tax authorities, which will examine your financial records and check the extent of your non-compliance. If more discrepancies are found, you may be charged with additional penalties, back taxes, and interests on top of the amount you originally owed, which might hurt, especially if you are a startup company. But here’s some good news for you: TaxHero offers Back-tax Strategy and Audit Support services to help you streamline your sales tax compliance. You may talk with our CEO to discuss your options and a way out of your sales tax debacle.
Legal Consequences
Harsher penalties await those who continue to avoid filing and paying their sales tax, even after numerous attempts by the state governments to reach and remind them of their obligations. You may also be liable to civil and/or criminal penalties, including prison time and additional late payment charges.
Reputational Damage
Sales tax non-compliance may greatly hurt your ecommerce business’ reputation. Customers may lose their trust or brand loyalty to your company if they find that you are not following sales tax regulations.
How Will State Governments Try to Collect Your Sales Tax Obligations?
Here are some of the ways state governments will try to reach you to remind you of your sales tax dues:
Notice of Non-Compliance
If you miss your deadline for filing or remitting your sales tax, the state where you are liable will send you a notice of non-compliance, reminding you of your obligations and the possible repercussions if you fail to file the return or pay your dues. The letter will state how much you owe in tax and what could happen next if the notice remains unheeded. It may also include a deadline for your payments, explain when your business will incur interest, and also include any penalty being charged.
Gain Interest
If you fail to respond to the warning letter sent out by the state government and still do nothing to settle your sales tax dues, you will begin incurring interest on the tax you owe.
Demand for Payment
If the initial notice of non-compliance goes unnoticed and you still do not make an effort to settle your obligations, the state government may issue a demand for payment. This is more formal than the first notice sent to you, which is why it is wise for you not to ignore this any longer. The demand will include the specific deadline by which the payment must be made.
Collection Efforts
If you still did not respond to the payment demand, the state may employ collection efforts through bank levies, wage garnishments, seizure of assets, and others to settle your tax debt. Some states may also place tax lien on your properties, which could affect your ability to sell or transfer any of your assets until the tax debt is paid.
Revocation of Permits and Licenses to Operate
Some states may suspend or unilaterally revoke your business permits or licenses if you fail to comply with your sales tax obligations. This could affect your ability to legally operate as a business.
Legal Action
Harsher penalties await those who continue to avoid filing and paying their sales tax, even after numerous attempts by the state governments to reach and remind them of their obligations. You may also be liable to civil and/or criminal penalties, including prison time and additional late payment charges.
How Does Each State Fine Those That Failed to File and Pay Sales Tax?
Civil penalties may be slapped if you are, in good faith, tried to comply with sales tax regulations but encountered a curveball in meeting the deadline or remitting the payment on time. Meanwhile, criminal penalties may apply if you’re found to:
Willfully delayed payment of any sales tax due or intended to evade payment
Willfully falsified a return or submitted a fraudulent one
Falsely executed or signed a public document intended to cover up a material fact relating to tax
Knowingly filed a return with an intent to deceive the state government of your tax liability
Below are the civil and criminal penalties for each state government:
STATE
PENALTY
FAILURE TO FILE SALES TAX RETURNS
FAILURE TO FILE COLLECTED SALES TAX
Alabama
Civil
Greater of 10% of the total sales tax due or $50
10% of the total sales tax due
Criminal
Misdemeanor
Felony
Alaska
not applicable
Arizona
Civil
4.5% of the total sales tax due per month or fraction
0.5% of the total sales tax due per month or fraction (maximum of 10%)
Criminal
Class 5 Felony
Class 5 Felony
Arkansas
Civil
5% of sales tax due per month or fraction (maximum of 35%)
5% of sales tax due per month or fraction (maximum of 35%)
Criminal
Class D Felony
Class C felony
Class D Felony
Class C Felony
California
Civil
10% of the total sales tax due
10% of the total sales tax due
Criminal
Misdemeanor
Felony
Misdemeanor
Felony
Colorado
Civil
Greater of 10% of the total sales tax due, in addition to 0.5% of the tax due per month (maximum of 18%) or $15
Greater of 10% of the total sales tax due, in addition to 0.5% of the tax due per month (maximum of 18%), or $15
Criminal
Misdemeanor
Class 5 Felony
Connecticut
Civil
Greater of 15% of the total sales tax due, or $50
Greater of 15% of the total sales tax due, or $50
Criminal
Up to $1,000 fine and/or up to one (1) year of imprisonment
Up to $1,000 fine and/or up to one (1) year of imprisonment
Delaware
not applicable
District of Columbia
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
5% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Misdemeanor
Felony
Misdemeanor
Felony
Florida
Civil
10% of the total sales tax due (minimum of $50)
10% of the total sales tax due (minimum of $50)
Criminal
Third-Degree Felony
Misdemeanor
First, Second, or Third Degree Felony, depending on the total sales tax due
Georgia
Civil
Greater of 5% of the total sales tax due or $5 per 30 days (maximum of 25% or $25)
Greater of 5% of the total sales tax due or $5 per 30 days (maximum of 25% or $25)
Criminal
High and Aggravated Misdemeanor
Felony
High and Aggravated Misdemeanor
Felony
Hawaii
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
Up to 25% of the sales tax due
Criminal
Misdemeanor
Class C Felony
Embezzlement
Idaho
Civil
Greater of 5% of the total sales tax due per month (maximum of 25%) or $10
0.5% of the total sales tax due per month (maximum of 25%)
Criminal
Misdemeanor
Felony
Illinois
Civil
2% of the total sales tax due (maximum of $250)
2% of the total sales tax due within 30 days, or
10% of the total sales tax due if more than 30 days but within 90 days or
15% of the total sales tax due if more than 90 days but within 180 days or
20% of the total sales tax due if more than 180 days
Criminal
Class 4 Felony for failure to file sales tax
Class 3 Felony if total sales tax due is $300 or more
Class 4 Felony for failure to file sales tax
Class 3 Felony if total sales tax due is $300 or more
Indiana
Civil
10% of the total sales tax due
10% of the total sales tax due
Criminal
Class A Misdemeanor
Class D Felony
Iowa
Civil
5% of the total sales tax due
5% of the total sales tax due
Criminal
Fraudulent Practice – For willful failure to file sales tax
Class D Felony – Attempt to evade
Fraudulent Practice – For willful failure to file sales tax
Class D Felony – Attempt to evade
Kansas
Civil
1% of the total sales tax due per month or fraction (maximum of 24%)
1% of the total sales tax due per month or fraction (maximum of 24%)
Criminal
$500 to $10,000 fine and/or one (1) to six (6) months imprisonment
$500 to $10,000 fine and/or one (1) to six (6) months imprisonment
Kentucky
Civil
Greater of 2% of the total sales tax due per 30 days, or fraction (maximum of 20%) or $10
Greater of 2% of the total sales tax due per 30 days, or fraction (maximum of 20%) or $10
Criminal
Class D Felony
Class D Felony
Louisiana
Civil
5% of the total sales tax due per 30 days, or fraction (maximum of 25%)
5% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Up to $1,000 fine and/or up to one (1) year imprisonment
If total sales tax due exceeds $1,000, up to $2,000 fine and/or up to two (2) years imprisonment
Up to $1,000 fine and/or up to five (5) years imprisonment
Maine
Civil
Greater of 10% of the total sales tax due or $25
1% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Class D Crime; Succeeding offenses are Class C Crime
Class D for intent to evade, Class C if the total sales tax due is $2,000 or more, or for succeeding offenses
Class Bfor the subsequent offense and total sales tax due is $2,000 or more
Class D Crime; Succeeding offenses are Class C crime
Class D for intent to evade, Class C if the total sales tax due is $2,000 or more, or for succeeding offenses
Class Bfor the subsequent offense and total sales tax due is $2,000 or more
Maryland
Civil
not applicable
Up to 10% of the total sales tax due
Criminal
Misdemeanor
Misdemeanor
Massachusetts
Civil
1% of the total sales tax due per month or fraction (maximum of 25%)
1% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Misdemeanor
Felony
Michigan
Civil
5% of the total sales tax due if filed within two months and
An additional 5% of the total sales tax due per month or fraction (maximum of 25%)
5% of the total sales tax due if filed within two months and
An additional 5% of the total sales tax due per month or a fraction of it after two months (maximum of 25%)
Criminal
Felony
Misdemeanor
Felony
Misdemeanor
Minnesota
Civil
5% of the total sales tax due
5% of the total sales tax due per month or fraction (maximum of 15%)
Criminal
Felony if there is a willful attempt to evade
Misdemeanor if there is none
Gross Misdemeanor – Knowing failure
Felony – willful attempt to evade
Mississippi
Civil
10% of the total sales tax due
10% of the total sales tax due for first offense,
15% of the total sales tax due for second,
25% of the total sales tax due for the third and
50% of the total sales tax due for succeeding offenses
Criminal
Misdemeanor
Misdemeanor
Missouri
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
5% of the total sales tax due
Criminal
Up to $10,000 fine and/or up to five (5) years imprisonment
Up to $10,000 fine and/or up to five (5) years imprisonment
Montana
not applicable
Nebraska
Civil
Greater of 10% of the total sales tax due or $25
Greater than 10% of the total sales tax due or $25
Criminal
Class IV Misdemeanor
Class IV Felony for attempt to evade
Class IVMisdemeanor
Class IV Felony for willful failure to pay
Nevada
Civil
10% of the total sales tax due
Up to 10% of the total sales tax due
Criminal
Misdemeanor
Misdemeanor
New Hampshire
not applicable
New Jersey
Civil
$100 with an additional 5% of the sales tax due per month or fraction (maximum of 25%)
5% of the total sales tax due
Criminal
Failure to file: disorderly person offense
Failure to file with intent: Third-degree crime
Disorderly Person Offense – Reckless or negligent failure to pay
Third-Degree Crime – Failure to pay with intent
Second-Degree Crime – Failure to pay $75,000 and total sales tax due
New Mexico
Civil
Greater of 2% of the total sales tax due per month or fraction (maximum of 20%) or $5
Greater of 2% of the total sales tax due per month or fraction (maximum of 20%) or $5
Criminal
Felony
Felony
New York
Civil
10% of the total sales tax due for the first month plus 1% for every month or fraction (maximum of 30% and minimum of $50) if late by a month or less
10% of the total sales tax due for the first month plus 1% for every month or fraction (maximum of 30%)
Criminal
Misdemeanor
Misdemeanor
Class E Felony for attempt to defraud the state or a political subdivision of at least $10,000
North Carolina
Civil
5% of the total sales tax due if not more than one month and an additional 5% for each month or fraction (maximum of 25% in aggregate) or $5 or which is greater
10% of the total sales tax due, $5 minimum
Criminal
Failure to file: Class 1 Misdemeanor
Attempt to evade: Class H Felony
Failure to pay: Class 1 Misdemeanor
Attempt to evade: Class H Felony
North Dakota
Civil
Greater of 5% of the total sales tax due per month or fraction (maximum of 25%) or $5
Greater of 5% of the total sales tax due or $5
Criminal
Class A Misdemeanor
Class A Misdemeanor
Ohio
Civil
Greater of 10% of the total sales tax due or $50
Greater of 10% of the total sales tax due or $50
Criminal
$100 to $1,000 fine and/or up to one (2) months imprisonment
Class 4 Felony
Oklahoma
Civil
25% of the total sales tax due if not filed within ten days after receipt of written demand
10% of the sales tax due after 15 days from the deadline
Criminal
Misdemeanor – Intentional disregard
Felony – Intent to defraud/evade
Misdemeanor – Up to $500 fine for 1st offense
Up to $1,000 fine and/or up to one (1) month imprisonment for the succeeding offenses
Oregon
not applicable
Pennsylvania
Civil
Greater of 5% of the total sales tax due per month or fraction (maximum of 25%) or $2
3% of the total sales tax due per month (maximum of 18%)
Criminal
Misdemeanor
Misdemeanor
Charges of Embezzlement, misapplication of entrusted property, and/or theft for failure to remit collected tax
Rhode Island
Civil
10% of the total sales tax due
10% of the total sales tax due
Criminal
Felony
Up to $10,000 fine and/or up to one (1) year imprisonment
South Carolina
Civil
5% of the total sales tax due if not more than a month, with an additional 5% for each month or fraction (maximum of 25%)
0.5% of the total sales tax due for the month, with an additional 0.5% for each month or fraction (maximum of 25%)
Criminal
Up to $10,000 fine and/or up to one (1) year imprisonment
Up to $10,000 fine and/or up to one (1) year imprisonment
South Dakota
Civil
Greater of 10% of the total sales tax due or $10
not applicable
Criminal
Class 1 Misdemeanor
Class 6 Felony for failure to file two (2) or more within a year
Class 1 Misdemeanor
Class 6 Felony – Failure to pay two (2) or more within a year
Tennessee
Civil
Greater of 5% of the total sales tax per month or fraction (maximum of 25%) or $15
Greater of 5% of the total sales tax due per month or fraction (maximum of 25%) or $15
Criminal
Class E Felony
Class A Misdemeanor if total sales tax due is less than $500
Class E Felony
Class A Misdemeanor if total sales tax due is less than $500
Texas
Civil
Greater of 5% (additional 5% if more than a month late) or $1
Greater of 5% (additional 5% if more than a month late) or $1
Criminal
Class C Misdemeanor
Class B Misdemeanor and/or up to $2,000 fine for second offense
Class A Misdemeanor and/or up to $4,000 fine for the succeeding offenses
Class C Misdemeanor if total sales tax due is less than $10,000
State jail felony if total sales tax due is between $10,000 to $20,000
3rd Degree Felony if total sales tax due is between $20,000 to $100,000
2nd Degree Felony if total sales tax due is $100,000 or more
Utah
Civil
Greater of 10% of the total sales tax due or $20
Greater of 2%, 5%, or 10% of the total sales tax due or $20
Criminal
Third Degree Felony – $1,000 to $5,000 fine
Second Degree Felony – $1,000 to $25,000 fine
Vermont
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
5% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Up to $1,000 fine and/or up to one (1) year imprisonment
Up to $10,000 fine and/or up to three (3) years imprisonment if total sales tax due exceeds $500
Up to $1,000 fine and/or up to one (1) year imprisonment
Up to $10,000 fine and/or up to three (3) years imprisonment if total sales tax due exceeds $500
Virginia
Civil
6% of the total sales tax due per month or fraction (maximum of 30%) or $10
6% of the total sales tax due per month or fraction (maximum of 30%) or $10
Criminal
Class 1 Misdemeanor
Class 1 Misdemeanor
Washington
Civil
5% of the tax the Department of Revenue has determined to be due
To increase to 15% if still not paid on the date in the notice
To increase to 25% if not paid within 30 days (minimum of $5)
9% of the tax the Department of Revenue has determined to be due
To increase to 19% if still not paid on the date in the notice
To increase to 29% if not paid within the next month following the due date (minimum of $5)
Criminal
not applicable
not applicable
West Virginia
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
0.5% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Misdemeanor – $100 to $2,500 fine
Misdemeanor – $100 to $2,500 fine and/or up to six (6) months imprisonment
Misdemeanor – Failure to pay tax collected
Felony – Failure to pay tax collected
Wisconsin
Civil
5% of the total sales tax due per month or fraction (maximum of 25%)
25% of the estimate if the sales tax return is not filed
5% of the total sales tax due per month or fraction (maximum of 25%)
Criminal
Misdemeanor
Felony or Misdemeanor Theft – depending on the amount of total sales tax involved
Wyoming
Civil
$10
$25 if not filed within a month after the receipt of the notice to file
10% of the total sales tax due
Criminal
Misdemeanor
Misdemeanor – Failure to collect and pay
Misdemeanor – Failure to remit taxes collected
Felony – Failure to remit taxes collected
Can I Ask for the Penalties and Interests to be Waived?
However, don’t fret just yet. Although state governments are quick to impose interests and penalties on sales tax non-compliance, they are also lenient, especially if it’s an honest mistake or if it’s your first time filing and collecting sales tax returns. You need to show that a “reasonable cause” exists in your case, and they may consider waiving the penalties or, on rare occasions, including the interest. Applications to waive differ from one state to another, so it is important that you consult with the local Department of Revenue where you owe sales tax. If you find this still too complicated and difficult, TaxHero can help you with this.
How Do I Avoid Sales Tax Penalties in the Future?
Understandably, filing and remitting sales tax might be overwhelming, especially to ecommerce businesses with a presence in multiple states and have economic nexus. However, as responsible business owners, you should be on the lookout if ever you have sales tax obligations so that you will avoid getting tagged as non-compliant and avoid the consequences. If you need help with your sales tax concerns, TaxHero can help you so that you and your business don’t suffer the harsh consequences.
Why Sales Tax Problems Can Escalate Quickly
Sales tax problems often become more serious faster than many business owners expect. This happens because sales tax is typically considered money collected on behalf of the state rather than normal business revenue. Once a business fails to file or remit taxes correctly, the issue can grow quickly due to penalties, interest, and compliance reviews. Several factors contribute to this escalation:
Unpaid tax balances continue growing: When sales tax is not paid on time, penalties and interest can begin accumulating almost immediately. Even a small balance can grow significantly over several months if the issue is not addressed quickly.
Multiple missed filings create multiple penalties: States typically require sales tax returns for every filing period, whether monthly, quarterly, or annually. Missing several periods may result in separate penalties for each unfiled return rather than a single combined charge.
States may review past activity more closely: If a business fails to file or pay taxes for a long period, tax authorities may start examining earlier transactions as well. This can lead to additional assessments if unpaid taxes are discovered from previous periods.
Collected tax is treated more seriously: If a business charges customers sales tax but does not remit it to the state, authorities often consider it a serious compliance violation. Because the money was collected from customers, the state may treat the situation as misuse of trust funds.
The Difference Between Late Filing, Late Payment, and Failure to Collect
Not all sales tax mistakes are the same, even though they are often grouped. Understanding the difference helps businesses determine what type of compliance issue they are dealing with. Each type of mistake can trigger different penalties and corrective actions.
Late filing occurs when a return is submitted after the due date: Even if no tax was owed for the reporting period, most states still require the return to be filed on time. Missing the deadline can result in penalties because states rely on returns to track business activity.
Late payment happens when the return is filed but the tax balance is not paid on time: In this situation, the state receives the filing but not the payment. Interest and late payment penalties may continue accumulating until the outstanding balance is fully paid.
Failure to collect sales tax happens when tax should have been charged but was not: This may occur when a business misunderstands nexus obligations or applies incorrect tax settings. In many cases, the business may still be responsible for paying the tax even if it was never collected from customers.
Incorrect tax collection can create additional adjustments: Charging the wrong tax rate may cause either underpayment or overpayment. Businesses often need to correct these errors through amended returns or additional filings.
Warning Signs That Your Business May Be Headed Toward Sales Tax Trouble
Sales tax problems rarely appear suddenly. In most cases, small operational issues begin to develop before compliance problems become serious. Recognizing these early warning signs can help businesses address problems before penalties occur.
Sales tax deadlines are frequently missed: If filing deadlines are consistently pushed back or forgotten, it may indicate that the business lacks a reliable system for managing tax obligations. Repeated delays increase the likelihood of penalties and compliance reviews.
Sales tax collection appears inconsistent: When some transactions include sales tax and others do not, it may signal incorrect tax settings or missing registrations. This inconsistency can lead to underpayment and reporting discrepancies.
Sales reports do not match filed returns: Differences between ecommerce platform reports, accounting records, and filed returns can create confusion during audits. Businesses should regularly reconcile these numbers to ensure accurate reporting.
The business is expanding into new states: Growth can trigger new tax obligations when sales thresholds or economic nexus rules are met. Businesses that do not monitor these thresholds may unknowingly create compliance gaps.
Sales tax responsibilities are unclear internally: When no specific team member is responsible for managing sales tax filings, important tasks may be overlooked. Clear ownership of compliance responsibilities helps reduce errors.
What Businesses Should Do Immediately After Missing a Sales Tax Deadline
Missing a sales tax deadline does not automatically mean the situation is irreversible. In many cases, the most important factor is how quickly the business takes corrective action. Taking prompt steps can help limit penalties and prevent the issue from becoming more complicated.
Identify the exact filing period that was missed: Start by confirming which state, reporting period, and return type are involved. This helps ensure the correct issue is addressed instead of submitting incomplete corrections.
Determine whether the issue involves filing, payment, or both: Some businesses miss only the filing requirement, while others fail to both file and remit taxes. Understanding the nature of the problem allows the business to take the appropriate corrective action.
Gather all relevant transaction records: Before filing corrections, businesses should review sales reports, tax collected, and previous returns. Accurate documentation helps prevent additional discrepancies during the correction process.
Submit the return and payment as soon as possible: Filing promptly can stop additional penalties from accumulating in many cases. Even if penalties apply, resolving the issue quickly demonstrates good faith compliance.
Review overall tax compliance procedures: After resolving the immediate issue, businesses should evaluate whether their systems need improvement. Updating processes can help prevent similar problems in the future.
Why Sales Tax Compliance Becomes Harder as Businesses Grow
Sales tax compliance often becomes more complex as businesses expand their operations. What starts as a simple filing process can become significantly more complicated once sales increase across multiple states. Understanding these challenges helps businesses prepare for growth more effectively.
Different states require different filing schedules: Some states require monthly returns, while others may require quarterly or annual filings. Businesses operating in multiple states must track several filing calendars at the same time.
Local taxes add additional complexity: Many jurisdictions allow counties or cities to apply their own sales tax rates. This means businesses must consider both state and local rates when calculating taxes.
Economic nexus rules create new obligations: When sales thresholds are exceeded in a particular state, businesses may become responsible for collecting tax there even without a physical presence. Monitoring sales activity helps businesses identify when these thresholds are reached.
Multiple sales channels create separate compliance considerations: Businesses that sell through both marketplaces and their own websites may face different tax responsibilities. Even if a marketplace collects tax on some transactions, the business may still be responsible for reporting others.
Frequently Asked Questions
Can I request an extension if I can’t file my sales tax return on the due date?
The simple answer is no. Although most state’s Department of Revenue typically gives due consideration for good causes, for example, natural disasters, extensions are generally not allowed. In this case, failure to file the sales tax return on time may incur late charges.
Do I have to file a sales tax return even on periods where I made no sales?
Yes. A sales tax return must always be filed, even on periods where no tax is due. If you made no sales on a particular period, put zero on the total tax due line and then submit it to the state government.
Can I file my sales tax return online?
Yes, as all states, excluding those that don’t collect, have online submissions for sales tax returns, whether through their websites or email.
Want a way out of your sales tax debacle? TaxHero got you!
If you want to avoid facing the consequences of failing to comply with the sales tax rules, TaxHero’s team of sales tax experts and certified public accountants are here to help you. You may book a time with our CEO to help you with your concerns so you will have nothing to worry about more than your business’ success. Filing your Alaska sales tax return is simple through the appropriate online portal. If you are a remote seller, you can file and pay directly through the Alaska Remote Seller Sales Tax Commission, as long as your business is registered to collect and remit sales tax.Local businesses with a physical presence typically file directly with their specific city or borough tax office.Though Alaska has no statewide sales tax, its cities or boroughs still levy local sales tax. This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Alaska’s unique decentralized sales tax rules.
What You Need Before Filing
Before filing your Alaska sales tax return, let’s set your expectations first. Since Alaska does not have a statewide sales tax, each locality has its own unique filing procedures. This can further complicate your sales tax returns.To simplify matters, an independent organization called the Alaska Remote Seller Sales Tax Commission (ARSSTC) takes action. With the ARSSTC Portal, businesses can easily file sales tax returns online for various taxing jurisdictions in Alaska.However, not all taxing jurisdictions in Alaska have adopted the code introduced by the ARSSTC. Therefore, there may still be local jurisdictions wherein you must follow a separate filing procedure.Thus, you can only easily file your Alaska sales tax return online if:
The taxing jurisdiction you are selling to is a participating member of the ARSSTC.
You’re a remote seller already registered with the ARSSTC after meeting the economic nexus threshold of $100,000 in annual gross sales (the 200-transaction threshold was repealed in 2025).
NOTE: If you’re not a remote seller (meaning you have a physical presence in the jurisdiction where the sale occurs), this means the ARSSTC cannot calculate your sales for that specific area. The ARSSTC threshold applies only to remote sales. Therefore, you’re required to file directly with your local taxing authorities for sales made within your home jurisdiction.However, if you’re selling to other taxing jurisdictions in Alaska where you do not have a physical location, you can qualify as a remote seller and register with the ARSSTC.That aside, here are the standard documents required to file a sales tax return in Alaska using the ARSSTC Portal:
Alaska Remote Seller Sales Tax Commission (ARSSTC) Registration – To efficiently file sales tax returns in participating taxing jurisdictions in Alaska, you must register with the ARSSTC first. Note that once you meet the economic nexus criteria ($100,000 in annual gross sales), registration is required for remote sellers and marketplace facilitators.
ARSSTC Portal Account Log-in Details – The primary way to file your Alaska sales tax return online is by logging onto your Alaska Remote Seller Sales Tax Commission Portal account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).NOTE: Using the ARSSTC Portal only simplifies the filing process for participating jurisdictions where you make remote sales. Some localities in Alaska may still not be a part of the ARSSTC code.Alaska jurisdictions that do not follow the ARSSTC code have their own filing procedures. Also, this means they have their own separate sales tax forms that cannot be found on the ARSSTC’s online filing website and require direct registration with those specific municipalities.
Total Sales – Gather your total revenue during the filing period. This includes all sales into Alaska, whether they’re taxable or not. Even if you currently have no sales records, the ARSSTC still requires you to file a “zero” return.
Taxable Sales – Compile the total taxable sales your business made within the filing period for each participating jurisdiction
Exempt Sales – Identify any sales made to tax-exempt entities or sales of exempt goods, as you will need to categorize these (e.g., government sales, resale) on the ARSSTC template.
Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number in advance for ACH Debit/e-check payments.
Filing Frequency Schedule – The ARSSTC assigns a specific due date for every registered business. In Alaska, member jurisdictions follow a uniform filing schedule assigned by the ARSSTC. Generally, most businesses must file monthly.However, some may file quarterly or annually if requested and approved by the ARSSTC based on low sales volume. To find out your designated schedule, you can contact the ARSSTC for assistance.
Step-by-Step: How to File Alaska Sales Tax Online
In Alaska, filing sales tax online is made easier through the ARSSTC organizationStep 1. Go to the state sales tax portal website – Alaska Remote Seller Sales Tax CommissionStep 2.Enter your Account Credentials: Log in using your username and password. Check your shared email or phone number, and input the OTP when applicable. Step 3.Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 4. Download the sales tax form or the Excel template from the ARSSTC Portal. Step 5. Fill in the Excel spreadsheet with sales for each district for the period.Step 6. Upload the spreadsheet Excel file. Follow these instructions:First, click on the link that says “Upload Excel Data Upload for Sales Tax”
Next, click “Choose File” and select the template you have filled out.
Step 7. Fill in all the required fields.Step 8. After completing the fields, click the “Submit” buttonStep 9.On the next page, it’s time to make a payment. Enter your bank details and then click “Pay”Step 10. Keep a copy of the return and/or payment confirmation for your records. This serves as proof of successful submission.Step 11. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.Helpful Tip: You can always click on “Save and Submit Later” to avoid losing your progress. This tip helps in case of internet issues, website downtime, or other disruptions that interrupt the filing process.
Due Dates
Member jurisdictions of the ARSSTC follow a uniform filing period. Generally, sales tax returns are due monthly.
However, those who want to file quarterly or annually must apply for approval with the ARSSTC. Typically, annual filing is reserved for businesses whose sales were entirely tax-exempt or had extremely low volume over the prior 12 months.
Refer to the table below for guidance.
FREQUENCY
REPORTING PERIOD
DUE DATE
Monthly
Monthly
Due on the last day of the following month
Quarterly
January – March
April – June
July – September
October – December
April 30
July 31
October 31
January 31
Annual
January 1 – December 31
January 31
NOTE: If the last day falls on a weekend or a legal holiday, the due date is moved to the next business day.
Due Date Filing Extensions
The ARSSTC may allow due date filing extensions under specific circumstances. There must be a demonstrable, reasonable cause to justify an extension, such as a documented technical failure of the filing portal or a natural disaster. If an extension is needed, you must request it from the ARSSTC by sending a written application at least five (5) business days before the original due date, whenever possible.Your application must include your reasoning and attach any supporting documents, such as screenshots of technical errors or official emergency declarations. NOTE: Extensions are typically not granted for general accounting delays or staffing issues.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Alaska, applicable discounts vary per locality. To find out which discounts apply to your sales tax return, consider the following options:
Check the “Calculated Discount” column in the ARSSTC Excel template – The portal is designed to automatically apply any vendor discounts allowed by member jurisdictions when you file on time.
See your jurisdiction’s local code to see if it allows discounts – This is also often called a “vendor collection fee” or “timely filing credit”.
Check or contact each local government in which your business has a physical presence – This is done as they may have different discount rules than the ARSSTC.
Read your jurisdiction’s sales tax forms – These forms may contain information on applicable discounts.
Filing Amended Returns
If you wish to correct a previously submitted return, you can easily do so via the ARSSTC Portal. Follow these steps:
Step 1:Log in to your ARSSTC Portal account.
Step 2:Find the “Amend Tax Form(s)” button at the bottom of the business center section. You will find the business center section at the top part of the “Your Remittance Account(s)” section.
Step 3: Click the return you wish to amend, then begin adjusting the entered information. Note that you can generally only amend a specific jurisdiction once per period through the portal. Meanwhile, for subsequent changes, you must contact ARSSTC staff.
Step 4: Prepare to provide a written justification within the portal’s “Reason for Amendment” field to request the approval of your amended return.
Step 5: The ARSSTC may approve or reject your amended return and notify you via email. The ARSSTC may also inform you through other contact details you have provided.
TIP: If you are amending a “nested” jurisdiction (such as a city within the Kenai Peninsula or Ketchikan Gateway Boroughs), you must remember to adjust both the city line and the borough line to ensure they match.NOTE: By amending a return, you agree to allow an audit if requested by the ARSSTC. You’re only allowed to amend returns that are not older than one (1) year from the original due date if your amendment reduces the total tax due.In case your due taxes increase after amending your return, the ARSSTC allows you to submit the additional amount at any time possible. However, the ARSSTC will calculate interest and late payment penalties on the additional principal.
Refunds
In case you overpaid your sales tax returns in Alaska, the ARSSTC allows you to process a refund request. However, you may only do so by amending your return first to establish the overpayment on your account. Once the authorities approve the amendment, the ARSSTC typically applies the overpaid amount as a credit toward your future tax liabilities.Note that you must file refund claims for errors in tax rates or exemptions within one (1) year of the original due date. To receive a cash refund instead of a credit, you may need to submit a formal “Remote Sales Tax Refund Form” to the Commission.If you overpaid taxes in a non-member jurisdiction of the ARSSTC, you must contact the local taxing authorities for a refund, as they each have their own separate forms and varying statutes of limitations.
Filing Zero Returns in Alaska
After registering your business with the ARSSTC, you’re still required to file a return even if you have no sales tax to report. To do so, you only have to write “0” (zero) in the appropriate fields of your sales tax return.
Other Filing Methods in Alaska
If you’re having difficulties filing your Alaska sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
File by Mail or Phone – Some localities in Alaska may allow you to file by mail or phone. If they are not a participating member of the ARSSTC, you must contact the local taxing officials for instructions.
File in Person – As instructed by the ARSSTC, you must file directly with your local government if you aren’t a remote seller in Alaska. You may file in person by visiting the local offices to assist you with your return.
Let TaxHero Manage Your Alaska Sales Tax Returns
TaxHero doesn’t just handle your Alaska sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without tracking multiple rules and deadlines yourself. Don’t wait until the next deadline, schedule your demo today!Understanding sales tax collection and remittance is crucial for businesses, given the requirements set by the US government. If you’re in the ecommerce business space, you might find it particularly challenging due to the unique rules and steps involved compared to traditional stores. However, with this guide at your side, navigating the complexities of sales tax for your ecommerce operation becomes more precise and manageable. We break down the current sales tax requirements, ensuring your business stays protected from audits and streamlines operations.
What is a Sales Tax for Sellers?
To a seller, sales tax is the additional amount collected from customers on the sale of tangible personal property. Notably, this category primarily encompasses consumer goods in physical form. In addition to tax collection, the business is responsible for remitting sales tax. Companies that do not have a sales tax nexus or sell non-taxable goods or services do not need to collect or remit sales tax.
Do I need to Collect Sales Tax for Selling Online?
The short answer is yes, only if you have a sales tax nexus. Nexus is a legal term for a “connection” to a state that allows it to require you to collect tax. In 2026, there are two primary types of nexus that you must monitor:
Physical Nexus: Having an office, employee, or inventory (including Amazon FBA warehouses) in a state.
Economic Nexus: Surpassing a specific sales volume in a state.
Compliance Alert: The “200 Transaction” Rule is Fading
Previously, many states used a threshold of “$100,000 in sales OR 200 transactions.” While many states are simplifying their rules, some thresholds remain in flux as of early 2026. For example, while Illinois has passed legislation to simplify nexus, the transaction count threshold remains in effect until specific provisions are met.
Here’s the updated economic nexus threshold of each state for 2026:
STATE
2026 THRESHOLD RULE
Alabama
$250,000
Alaska
$100,000
Arizona
$100,000
Arkansas
$100,000
California
$500,000
Colorado
$100,000
Connecticut
$100,000 AND 200 transactions
District of Columbia
$100,000 or 200 transactions
Florida
$100,000
Georgia
$100,000 or 200 transactions
Hawaii
$100,000 or 200 transactions
Idaho
$100,000
Illinois
$100,000
Indiana
$100,000
Iowa
$100,000
Kansas
$100,000
Kentucky
$100,000 or 200 transactions
Louisiana
$100,000
Maine
$100,000
Maryland
$100,000 or 200 transactions
Massachusetts
$100,000
Michigan
$100,000 or 200 transactions
Minnesota
$100,000 or 200 transactions
Mississippi
$250,000
Missouri
$100,000
Nebraska
$100,000 or 200 transactions
Nevada
$100,000 or 200 transactions
New Jersey
$100,000 or 200 transactions
New Mexico
$100,000
New York
$500,000 and 100 transactions
North Carolina
$100,000
North Dakota
$100,000
Ohio
$100,000 or 200 transactions
Oklahoma
$100,000
Pennsylvania
$100,000
Rhode Island
$100,000 or 200 transactions
South Carolina
$100,000
South Dakota
$100,000
Tennessee
$100,000
Texas
$500,000
Utah
$100,000
Vermont
$100,000 or 200 transactions
Virginia
$100,000 or 200 transactions
Washington
$100,000
West Virginia
$100,000 or 200 transactions
Wisconsin
$100,000
Wyoming
$100,000
Origin-Based vs. Destination-Based Sales Tax
Once you have nexus, you must determine which tax rate to charge. This depends on “sourcing” rules.
Sellers usually need clarification on origin-based and destination-based sales tax. Both terms refer to different methods of collecting in-state taxes. Let’s have a look at both.
Origin-Based Sales Tax
If you are in an origin-based state, you must charge sales tax based on your business’s location. For example, if you are located in Arizona, you need to charge the rate for your specific business address regardless of where in the state your customer is. Building on this, let’s use Phoenix, AZ’s combined sales tax rate of 8.6% (state, county, and city taxes). Whenever you sell to any customer, whether they reside in Phoenix or order from Tucson (where the combined sales tax rate is 8.7%), you consistently apply the 8.6% sales tax rate to all transactions. This is because, in origin-based states like Arizona, the tax rate is anchored to the seller’s location, making the calculation straightforward and uniform, regardless of where your customers are situated. These states impose an origin-based sales tax:
Arizona
Illinois
Mississippi
Missouri
Ohio
Tennessee
Utah
Virginia
Destination-Based Sales Tax
In these states, the sales tax hinges directly on your customer’s location. As a seller, you’ll calculate different sales tax rates for each transaction, depending on where your customer lives or where the product is shipped. In addition to origin-based states, all other states impose destination-based sales tax (excluding thosewith zero sales tax). If you are a remote seller, there might be different sales tax laws from in-state sellers for origin-based states.New Mexico is originally a state under origin-based sales tax. However, it transitioned to destination-based sourcing in 2021.
Pennsylvania operates under a “modified” origin-based sourcing rule for in-state sales, but has transitioned to a destination-based sourcing system for remote sellers via Act 13.
Similarly, Texas is a hybrid/destination-heavy state for remote sellers. While local businesses use origin-based rates, remote sellers with no physical presence in Texas must use destination-based rates or the Single Local Tax Rate option.You can visit your state’s Department of Revenue website to understand how tax collection works for remote sellers, or book a call with us, and we’ll guide you through the process.
Hybrid Sourcing Sales Tax
Many states use Hybrid Sourcing, most notably California.
In California, the “base” state, county, and city taxes are origin-based (tied to the seller’s location), but district taxes (which can add 1%–3%) are destination-based. If you are a seller in Los Angeles shipping to a different district, you must collect the buyer’s location’s district tax rate.
How to Collect Sales Tax?
Sales tax collection and remittance are two different but equally important steps. According to the state’s laws, sales tax collection refers to obtaining sales tax from customers as a percentage of their taxable item or service.
Understand your State Laws
The prerequisite to sales tax collection is understanding the laws of all states where you do business or sell. Did you know that approximately 45 states enforce a state sales tax, with 38 of them levying an additional local sales tax? If you are an ecommerce seller, you may have sales tax nexus in multiple states. Ensure you understand all those states’ sales tax laws to design your strategy accordingly.
Determine the Correct Sales Tax Amount
To collect the due sales tax on your transactions accurately, you must be well-versed with the sales tax rates in the states where you have established a tax nexus. Consider specific considerations such as sales and transaction thresholds, non-taxable items, and fluctuating local tax rates. Simplify this process by leveraging sales tax calculators like Shopify, which ensure precise calculations for each transaction, guarantee compliance, and minimize errors.
Register for a Sales Tax Permit
Before you begin collecting sales tax, it’s mandatory to register for a sales tax permit in the states where you have a tax nexus. Remember, collecting sales tax without a valid permit is against the law.
Collect Tax on All Sales Channels
Do you sell on multiple sales channels (e.g., brick-and-mortar store, drop shipping, etc.)? Ensure that you collect sales tax on all of them. For instance, if you have an online store and a physical outlet, you must collect sales tax on transactions through both channels and file a sales tax return for sales from both.
Do I Need to Collect Sales Tax on Shipping and Handling Charges?
Taxable Items Delivery: The shipping charges are usually taxable when linked to the delivery of taxable goods.
Separately Stated & Optional Charges: If shipping and handling fees are optional and listed individually on the invoice, they are typically exempt from sales tax, even if the shipped item is taxable. In states like New York, Texas, and Pennsylvania, if the item being sold is taxable, the shipping and handling charges are almost always taxable, even if they are listed individually and are optional. In California, separately stated delivery charges are often exempt, but only under very specific conditions regarding how the delivery is handled.
Non-Taxable Items Delivery: Shipping charges associated with non-taxable items are generally not subject to sales tax.
Combined Shipments: If you ship a taxable shirt and an exempt grocery item together, most states require you to “pro-rate” the tax on the shipping fee based on weight or price.
Remitting Sales Taxes
Sales tax revenue is used by state and local governments to fund various public services, such as schools, roads, and public safety. Failing to remit the correct sales tax amount can result in penalties, fines, and even legal troubles for your business. Ensuring accurate and timely sales tax remittance is essential to maintain compliance and avoid costly consequences. Here’s how it is done:
Know Your State’s Rules: Each state has rules for reporting sales tax. Some want just a summary, while others need a more detailed report.
Collect Sales Tax: Set up your e-commerce platform to automatically calculate and collect the correct sales tax from your customers based on their location. Make sure your tax settings are up-to-date and accurate.
Keep Detailed Reports: Provide a clear, complete report of the sales tax you’ve collected, following your state’s guidelines.
Submit Your Sales Tax Returns: Adhering to the specific filing and sales tax remittance deadlines set by your state, which may be monthly, quarterly, or annually, is paramount in sales tax compliance. Alongside submitting your returns, ensure the timely payment of collected taxes.
It’s worth noting that you should consistently file your sales tax returns, even if you didn’t collect any tax during the period, including filing zero sales tax returns. Moreover, capitalize on potential discounts some states offer for early filings; these can alleviate your total tax burden.
Frequently Asked Questions
1. How to collect and remit sales tax?+
To collect and remit sales tax, businesses must first register for a sales tax permit with the appropriate state or local tax authority. After registering, they need to determine whether they have sales tax nexus, which establishes their obligation to collect tax in a state.Once the nexus is confirmed, the correct sales tax rate must be calculated based on the buyer’s location. The business then collects the appropriate tax from customers at the point of sale. Finally, the collected tax must be reported and remitted to the state by filing sales tax returns on a scheduled basis: usually monthly, quarterly, or annually.
Many businesses use automated tax software to manage changing rates, maintain accurate records, and submit payments through state online filing portals.
2. What do businesses do with collected sales tax?+
Businesses do not keep collected sales tax as revenue. Instead, they record it as a liability on their balance sheet, usually in a “Sales Tax Payable” account, because the money belongs to the government rather than the business.After collecting the tax from customers, the business holds these funds temporarily and then remits them to the appropriate state or local tax authority when filing its sales tax return. This typically occurs on a scheduled basis—monthly, quarterly, or annually—depending on the filing requirements assigned to the business.
3. Does Shopify automatically collect and remit sales tax?+
Shopify can automatically calculate and collect sales tax at checkout once you configure your tax settings. However, the responsibility for tax compliance still generally remains with the merchant.
The Takeaway
Dealing with real-world sales tax challenges demands more than just theoretical knowledge. The ideal approach involves possessing the expertise and practical know-how to manage your sales tax responsibilities effectively. Connect with our team by booking a call and let TaxHero professionals help you with sales tax collection and remittance in different states. Get top-notch filing and remitting sales tax services and eliminate the risk of missed deadlines!
When starting or expanding your business, you must obtain the necessary licenses and permits. They protect you from legal issues and allow you to perform your business activities faultlessly.
Among various licenses, a seller’s permit is essential for any business operating in the US (except for the states with no sales tax). Whether conducting a brick-and-mortar business or an ecommerce company, you’ll need a seller’s permit.
It can be complicated for new businesses to understand where to start. This article outlines a seller’s permit and the step-by-step process to obtain it.
What is a Seller’s Permit?
A seller’s permit is also often called a sales tax permit, retail license, sales tax license, vendor’s license, use tax permit, or certificate of authority. In general, every business, whether ecommerce or on-site, must obtain this to conduct business in a state.
Specifically, it is a document that authorizes the collection of sales tax on taxable goods and services from customers on behalf of the state.
Once obtained, a business becomes an intermediary between the customer and the government for sales tax collection. At the point of sale, customers pay sales tax to the business on each taxable item’s sale price. Finally, the registered seller collects and remits the sales tax to the state’s taxing authority.
Seller’s Permit vs. Business License: What’s the Difference?
Many new entrepreneurs confuse these two documents.
Business License: Issued by your city or county to give you the legal right to operate a business in that local jurisdiction.
Seller’s Permit: Issued by the state (Department of Revenue) specifically to allow you to collect sales tax from customers and report it to the government. You often need both to be fully legal.
How to get a Seller’s Permit?
Getting a seller’s permit is simple, but the process may vary by state. The cost of a seller’s permit also varies. Most states don’t charge any fees for the license. Still, some states require a registration fee, security deposit, and renewal charges.
You can find the seller’s permit application on each state’s Department of Revenue website. For instance, the applications in Florida and California are available on the respective states’ websites.
Economic Nexus Update
In the past, many states required a permit if you had 200 transactions OR $100,000 in sales. Note: Many states (including Illinois, South Dakota, Utah, and Wyoming) have recently removed the “200 transaction” threshold. Now, you typically only need a permit if your sales exceed $100,000 in that state, though you should check specific state rules as they evolve.
Special Note for E-commerce Sellers
Even if you sell exclusively on marketplaces that collect tax for you (Marketplace Facilitators), most states still require you to register for a seller’s permit in your home state or states where you have physical inventory.
Documents Needed to Apply
The following documents are usually required for sales tax permit registration. However, depending on your business entity and the nature of your business, the requirements may vary.
Business name and address
Social Security Number (SSN) or Employer Identification Number (EIN)
Projected monthly sales
Description of goods sold
Bank Account Information: While some states request this to verify your identity or set up automated tax payments (EFT), it is not a universal requirement for the permit itself.
Steps on How to Get a Seller’s Permit
Firstly, identify where you have nexus. This includes your home state and any state where you have employees, inventory (like an FBA warehouse), or high sales volume.
Next, visit the State’s Department of Revenue Website and look for “Business Registration.”
Subsequently, complete the application by providing your business details.
Lastly, wait for your permit to arrive. Most states issue a digital permit number immediately or via mail within 7-10 business days.
States Guide
If your business has a physical or economic nexus in any U.S. state, click on the corresponding state below for a detailed guide on how to obtain a seller’s permit there.
Each guide includes step-by-step instructions, application links, and important local requirements to help you stay compliant.
Currently, of the 45 states that impose a state or local sales tax, approximately 15 states charge a fee for issuing a sales tax permit. As of 2026, these application fees typically range from $0 to $100.
Florida offers one of the lowest costs: $5 for paper applications and $0 for online registration.
Connecticut charges the highest fee, $100 for a permit.
Wyoming charges a one-time fee of $60 and remains a favorite for sellers because it does not require a license renewal.
In Ohio, the application fee was increased to $50 in April 2025; however, this fee applies only to in-state vendors, while out-of-state sellers can generally register for free.
Here is a summary table of the seller’s permit costs of the mentioned states:
STATE
2026 FEE
NOTES
Connecticut
$100
Currently, the highest fee in the U.S.
Washington
Ranges from $50 to $111
First, there is a fee for the mandatory Business License. Typically, most sellers will pay between $50 and $111, depending on the specific endorsements and city-level registrations required.
Wyoming
$60
Notably, the one-time registration fee for Wyoming is $60. Likewise, out-of-state vendors are also often required to pay this same amount.
Ohio
$50 for Vendor’s Licenses; $0 for remote sellers
Ohio’s Vendor License fee doubled to $50 (HB 366) to support the Organized Crime Commission Fund.
Out-of-state sellers (Remote Sellers) registering for a Seller’s Use Tax account typically still pay $0
Florida
$0 or $5
Free online; a $5 fee applies only to paper forms.
Find the cost of a sales tax permit in each state before filling out the application. Remember that the cost can also depend on the application method. For instance, Florida offers free online sales tax license registration but charges a $5 application fee for mail-in applications.
Renewal of Seller’s Permit
Some states require sellers to renew their permits, while others issue permits without an expiration date. The renewal requirements also vary by state that charges sales tax. The following states are examples of a few states that do not have a renewal requirement:
Texas: No expiration; permit is valid until the business closes or the Comptroller cancels it for inactivity.
California: Valid indefinitely.
Virginia: Permanent at the state level. Also, local city/county business licenses in VA often do require annual renewal, but the sales tax permit itself does not.
On the other hand, states like Colorado, Indiana, Louisiana, and Pennsylvania issue renewable seller’s permits. The permit’s validity period, renewal fees, and other requirements vary by state.
STATE
RENEWAL FREQUENCY
2026 STATUS
Colorado
Every 2 years
Previously, all prior licenses expired on Dec 31, 2025. Therefore, businesses must be renewed by Jan 1, 2026, to remain valid. Additionally, the renewal fee is $16.
Currently, Colorado has eliminated the vendor fee (service fee). As a result, retailers are no longer permitted to retain a percentage of the tax as a “timely filing” expense.
Indiana
Every 2 years
Automatic renewal at no cost if all taxes are paid and filed.
Pennsylvania
Every 5 years
Must be renewed via the myPATH portal.
Louisiana
Every 2 years
While the registration is permanent, the Resale Certificate (which most sellers use as their permit) must be renewed every 2 years.
Things to Remember
Consider a few important things when getting a sales tax certificate:
Depending on the state, getting your seller’s permit may take a few days to a few weeks. Most states now offer immediate “temporary” permits upon online registration, but a formal physical certificate can still take 1–3 weeks to arrive.
Some states impose penalties on businesses conducting their activities without a permit. Currently, many states have increased “failure to register” penalties. In Texas, for example, operating without a permit is now treated with zero tolerance. Beyond back taxes and interest, you can face a Class C misdemeanor for operating without a permit, which generally carries a $500-per-day fine, plus mandatory collection of back taxes. Also, civil penalties of up to $2,000 per day for refusal to permit an audit or repeated failure to produce records after a demand.
Some states require businesses with a physical location to display the permit.
What is the Difference Between a Seller’s Permit and a Reseller Permit?
Although they sound similar, there are differences between a seller’s permit and a reseller permit, as well as in their uses.A reseller’s permit is a document issued by the state that allows sellers to buy products intended for resale without paying sales tax. It is also known as a reseller’s license, resale certificate, or wholesale certificate. It is used and accepted differently in every state. While often used interchangeably, they are different. A Seller’s Permit is your license to collect tax. Meanwhile, a Resale Certificate is a document you give to your suppliers that allows them to buy inventory tax-free using your permit number. Therefore, you cannot have a valid resale certificate without first obtaining a seller’s permit.Keeping it simple, resellers can purchase items tax-free for resale if sales tax is charged on those items when sold to the end customer.
Common Mistakes to Avoid
Registering Too Late: You should have your permit before you make your first sale.
Using the Wrong EIN: Ensure your permit matches the legal entity (LLC vs. Sole Proprietorship) listed with the IRS.
Frequently Asked Questions
1. Can I use my seller’s permit in other states?+
No. A permit is state-specific. If you have nexus in three states, you need three separate permits.
2. Do I need a permit for service-based businesses?+
Usually no, unless your state taxes services (like Hawaii or New Mexico) or if you sell parts along with your service.
3. How long does it take to get a permit?+
Online applications are often processed in 24 hours, but paper applications can take 2–4 weeks.
Let TaxHero Handle Your Seller’s Permit
Applying for a seller’s permit, meeting all the requirements, completing all the documentation, and finally obtaining the permit are time-consuming and mundane. Let TaxHero take the burden off your shoulders so that you can focus on growing your business and focus more on value-added activities. Book a call todayand let TaxHero handle all seller’s permit applications from all states.
In the vast landscape of ecommerce, retail is one of the most fundamental approaches to conducting business. Most retail businesses purchase wholesale inventory or materials and sell them to customers for profit. If you are a business that resells products, the supplier requires a resale certificate if you want to avoid paying sales tax on the products or items purchased.Sales tax exemptions are tempting and complicated at the same time. Resale certificates help ensure that businesses comply with tax regulations. By understanding resale certificates and their requirements, businesses can avoid legal issues and penalties related to tax evasion.In this guide, we have explained a state-by-state breakdown of rules for resale certificates to make it easy for you to navigate.
What is a Resale Certificate?
A resale certificate is a document that exempts registered businesses from paying sales tax on items that are purchased or intended for resale, as the end customer will pay the sales tax.These items could be materials used to create or make the finished product. For example, if an ecommerce business sells clothes, they can buy tax-free clothes from a wholesale supplier by showing a resale certificate. A resale certificate is often called a reseller permit. It is entirely different from a seller’s permit and is required only by registered businesses that purchase qualifying items from suppliers for resale. A resale certificate confirms that the buyer intends to resell the purchased goods, which exempts the transaction from sales tax. Therefore, they are not responsible for collecting or remitting sales tax to avoid double charging sales tax on a single item.
How to Get a Resale Certificate?
Every state has its own rules regarding issuing resale certificates to eligible retailers. Here’s how you can get one:
Understand the resale certificate requirements in the state where you have a physical nexus and the states where your vendors are located.
Apply for a sales tax permit in the state before getting a resale certificate (if applicable).
Fill out the application form specified by your state’s Department of Revenue.
Provide the required documents and wait for the verification process.
If you purchase products from suppliers in multiple states, you might be allowed to use an out-of-state resale certificate for those states. In addition, the District of Columbia and twelve other states need you to obtain their seller’s permit to receive a resale certificate.
What are Multistate Resale Certificates?
Multistate resale certificates allow you to simultaneously get sales tax exemption for multiple states. There are two multistate resale certificates available that businesses can use:
You can apply for any of these certificates to avoid applying for a new resale certificate in each state. Although, be reminded that not all states accept these certificates. You can only use these certificates in a state that allows and accepts multistate resale certificates.
How to Use a Resale Certificate?
Once you fulfill the requirements for your state and get a resale certificate, you can provide it to your vendor/supplier to avoid paying sales tax on items you intend to resell. However, these certificates make you liable for sales tax collection in your respective state. Sometimes suppliers may refuse to honor a resale certificate because they are responsible for the uncollected sales tax if the certificate has expired. If you don’t get a tax exemption from a seller, you can request a refund from the tax authorities if you resell the products and can provide evidence of that.
Difference Between a Reseller Permit and Sales Tax Exemption Certificate
A reseller permit and a sales tax exemption certificate are different documents for different purposes. Here is the difference between these documents.
A reseller permit is a type of exemption document issued by the government allowing a business to purchase goods, without paying sales tax, for the purpose of reselling to a customer. This does not exempt you from products or items you buy from vendors for use in your business (i.e., office supplies, computer equipment).
A sales tax exemption certificate is a broader term referring to a document that allows individuals and businesses exemption from paying sales tax on all items and products. It is only issued to specific organizations that qualify for sales tax exemption in that state, such as a nonprofit (i.e., 501(c)(3) organizations). Each state has requirements for organizations that qualify for sales tax exemption certificates. For example, in Florida, government entities are exempt from sales tax.
State-by-State Guide
Some form of resale certificate is required in all states where you have vendors except those with no sales tax, whether an out-of-state resale certificate or a state-specific one. Below is a state-by-state breakdown of resale certificate requirements.
Since the state doesn’t have a general sales tax for transactional sales, providing a Montana Business Registry Resale Certificate to your vendor should suffice.
Not every business needs a resale certificate. These documents are specifically intended for businesses that purchase goods or materials for the purpose of reselling them to customers. If a business buys items that will be resold in the normal course of business, presenting a resale certificate allows the transaction to be treated as tax-exempt. The responsibility for collecting sales tax is then transferred to the final retail sale when the item is sold to the customer. Common situations where a resale certificate is typically required include:
Retail inventory purchases: Retailers buying finished goods from wholesalers generally need a resale certificate so they are not charged sales tax when purchasing inventory intended for resale.
Manufacturing or product assembly: Businesses that manufacture goods may use resale certificates to purchase raw materials or components that become part of the final product sold to customers.
Dropshipping arrangements: In dropshipping setups, sellers often provide resale certificates to suppliers so products can be shipped directly to customers without the seller paying sales tax on the initial purchase.
However, resale certificates cannot be used for items purchased for business use, such as office supplies, computers, or equipment used in daily operations.
Common Situations Where Resale Certificates Are Required
Many ecommerce and retail transactions involve resale certificates even when businesses may not initially realize it. Understanding when suppliers expect these documents can help prevent delays or unexpected sales tax charges. Here are several common situations where a resale certificate is typically requested.
Wholesale purchasing relationships: Wholesale distributors commonly require buyers to provide a resale certificate before completing a tax-exempt transaction. Without it, the supplier may be required to charge sales tax to avoid liability for uncollected tax.
Online retail sourcing: Ecommerce businesses frequently source inventory from manufacturers, distributors, or wholesale marketplaces. Providing a resale certificate allows these purchases to remain tax-exempt because the tax will ultimately be collected from the final customer.
Interstate inventory sourcing: Businesses often purchase goods from suppliers located in other states. In these cases, the vendor may accept either an out-of-state resale certificate or a multistate exemption certificate, depending on state rules.
Ongoing supplier relationships: Many suppliers keep resale certificates on file through a blanket certificate arrangement, which covers repeated purchases rather than requiring a new certificate for every order.
Understanding these scenarios can help businesses prepare the required documentation before placing orders with suppliers.
Records Businesses Should Keep When Using Resale Certificates
Resale certificates play an important role in how ecommerce businesses manage inventory sourcing and tax compliance. Without these certificates, businesses purchasing inventory would often have to pay sales tax upfront and then charge sales tax again when selling the product. This would create unnecessary costs and complicate tax reporting. For ecommerce sellers, resale certificates help support several operational advantages.
Reducing upfront inventory costs: By purchasing inventory tax-free, businesses avoid paying sales tax before the product is sold. This can significantly improve cash flow, especially for growing ecommerce brands purchasing large quantities of products.
Simplifying wholesale sourcing: Many ecommerce businesses rely on suppliers located in different states. Resale certificates help streamline purchasing by providing documentation that the inventory is intended for resale.
Supporting marketplace and online sales: Even when online marketplaces collect sales tax from customers, sellers may still need resale certificates to purchase products tax-free from suppliers.
Maintaining compliance with tax authorities: Proper use of resale certificates ensures that sales tax is collected at the correct point in the transaction chain, which helps businesses remain compliant with state tax regulations.
For ecommerce companies managing large product catalogs or sourcing inventory from multiple vendors, resale certificates are an essential part of maintaining efficient tax compliance.
How Resale Certificates Support Ecommerce Businesses
Resale certificates play an important role in how ecommerce businesses manage inventory sourcing and tax compliance. Without these certificates, businesses purchasing inventory would often have to pay sales tax upfront and then charge sales tax again when selling the product. This would create unnecessary costs and complicate tax reporting. For ecommerce sellers, resale certificates help support several operational advantages.
Reducing upfront inventory costs: By purchasing inventory tax-free, businesses avoid paying sales tax before the product is sold. This can significantly improve cash flow, especially for growing ecommerce brands purchasing large quantities of products.
Simplifying wholesale sourcing: Many ecommerce businesses rely on suppliers located in different states. Resale certificates help streamline purchasing by providing documentation that the inventory is intended for resale.
Supporting marketplace and online sales: Even when online marketplaces collect sales tax from customers, sellers may still need resale certificates to purchase products tax-free from suppliers.
Maintaining compliance with tax authorities: Proper use of resale certificates ensures that sales tax is collected at the correct point in the transaction chain, which helps businesses remain compliant with state tax regulations.
For ecommerce companies managing large product catalogs or sourcing inventory from multiple vendors, resale certificates are an essential part of maintaining efficient tax compliance.
Frequently Asked Questions
Can I use the same reseller’s permit in every state?
No, you cannot use the same resale certificate. States usually require you to get a resale certificate specific to their state or might allow you to fill out an out-of-state reseller certificate. However, some states allow you to use a multistate resale certificate acceptable in multiple states.
How long should you keep the resale certificates on file?
As a purchaser, you should keep the resale certificate as long as they are valid. As a seller, you must keep the resale certificates as long as the statute of limitation on purchase is valid to avoid penalties. The statute of limitation or the timeframe for sales tax assessment varies among states.
Do all sellers accept resale certificates?
No, not all sellers accept resale certificates. The seller is responsible for any uncollected sales tax, which may result in a legal penalty. Therefore, if a seller is unsatisfied with a resale certificate, they may not honor it. If your seller does not accept your resale certificate and you resell products, you can request a refund from the state tax authority for the sales tax you paid to the seller.
Want to Streamline Your Resales Tax Operations? Let’s Connect
Every state has rules, regulations, and requirements regarding issuing and using resale certificates. Let our Certified Public Accountants at TaxHero help you get a comprehensive solution for all your sales tax exemption needs.
Filing your North Dakota sales tax return doesn’t have to be complicated, especially with the state’s online system. You can submit your sales tax return online using North Dakota’s Taxpayer Access Point (ND TAP) website.
This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with North Dakota’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in North Dakota:
North Dakota Taxpayer Account Number (Sales and Use Tax Permit) – You’re required to have a North Dakota sales and use tax account to file your sales tax return. Once your registration with the North Dakota Office of the State Tax Commissioner is approved, you should receive this documentation at your provided mailing address.
ND TAP Account Log-in Details – The primary way to file your North Dakota sales tax return online is by logging onto your ND TAP account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions.
Local Sales Tax Report– Some cities in North Dakota impose a local sales tax. Thus, if you have a nexus in those cities, you must keep track of your sales for each jurisdiction.
Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find out your designated schedule, you can check your North Dakota Sales and Use Tax Permit or your ND TAP account.
Step-by-Step: How to File North Dakota Sales Tax Online
The online filing process is a logical progression of data entry and verification. While the exact screen layouts may eventually evolve with a new e-filing platform, the core workflow remains constant.Step 1. Go to the state sales tax portal website – North Dakota Taxpayer Access Point (ND TAP).Step 2.Enter your Account Credentials: Log in using your username and password. Check your shared email/phone number and input OTP, when applicable.Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 4. On the dashboard, click on “File, Amend, or Print Return”Step 5. Click “File Now” on the line that corresponds to the period for filing.Step 6. Next, select the applicable options and then enter the total sales based on your Ecommerce Sales Tax Report.Step 7. Now, enter the total local tax for each jurisdiction shown on your Ecommerce Sales Tax Report. Then click the Next button.Step 8. Review the balances. Once done, tick the checkbox to Confirm. Step 9. Now, enter your contact details and then click “Submit” to proceed.Step 10. Click on “Make a Payment” Step 11. Choose your preferred payment method.Step 12. Next, click on “Pay” to proceed.Step 13. Enter your bank information or choose your previously saved account to pay your balance.Step 14. Schedule your preferred processing date. Next, enter the payment amount and then click “Submit“Step 15. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.Helpful Tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Due Dates
Your filing frequency depends on the amount of sales tax you collect in a calendar year. The state allows a monthly, quarterly, or annual filing frequency. Your schedule is determined by the time you apply for your North Dakota Sales and Use Tax Permit.
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
More than $3330 in collected sales tax in the preceding calendar year
Monthly
Due on or before the last day of the month following the reporting period
Quarterly
Less than $3330 collected sales tax in the preceding calendar year
January – March
April – June
July – September
October – December
Due on or before the last day of the month following the reporting period
Annually
Average monthly sales tax liability is less than $80
January 1 to December 31
January 31 of the following year
NOTE: If the due date falls on weekends or legal holidays, the due date is moved to the following business day.You can also visit TaxND to see the future due dates for each filing schedule.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. Under North Dakota’s Administrative Code 57-39.2-12.1, taxpayers who file on time may deduct and retain 1.5% of the combined state sales, use, and gross receipts tax due. The maximum discount allowed is a total of $110 per return.
Filing Amended Returns
If you need to correct a previously submitted return, the state allows you to amend your sales tax return. To do so, you must use the “Amend” feature in ND Tap.You can also amend a sales tax return by mail. However, to receive instructions on how to amend your return by mail, you must contact the North Dakota sales tax department at 701-328-1246.
Refunds
In case you overpaid your sales tax return, taxpayers can file a claim for a refund. You must ensure that it’s filed within three years after the due date of the return or the date the return was filed, whichever is later. This rule is stated in North Dakota’s Century Code § 57-39.2-15.You may also use the “Amend” feature in ND Tap to request a refund for your overpayment.
Filing Zero Returns in North Dakota
In North Dakota, you’re still required to file a return even if you have no sales tax to pay or report. To file a zero return, you have to write “0” (zero) on the appropriate fields of your sales tax return.If you don’t file a zero return, your return will be tagged as a delinquent return. To avoid any penalties, it’s crucial to file a return even if you have no sales tax to pay or report.
Other Filing Methods in North Dakota
If you’re having difficulties filing your North Dakota sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
NOTE: Paper filing is no longer a general option for sales tax returns. On January 1, 2023, North Dakota officially stopped mailing paper return forms for sales and use tax returns, making electronic filing through ND TAP the required method for all general filers.
Let TaxHero Manage Your North Dakota Sales Tax Returns
TaxHero doesn’t just handle your North Dakota sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!Filing your New Jersey sales tax return is simple with the state’s online system. You can file and pay directly through the NJ Tax Portal, as long as your business is registered to collect and remit sales tax. This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with New Jersey’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in New Jersey:
New Jersey Taxpayer ID Number (FEIN) – To file a sales tax return in New Jersey, you must prepare your FEIN and your business’s registered name. Your FEIN is recognized as your Taxpayer ID number. Add three zeros (000) at the end of your 9-digit FEIN to complete the 12-digit Taxpayer ID number required by the NJ Tax Portal.
New Jersey Tax Portal Account Log-in Details – The primary way to file your New Jersey sales tax return online is by using the NJ Tax Portal webpage. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).The NJ Tax Portal also allows filing and paying returns as a guest user, meaning that logging in is not required. However, creating an account is highly encouraged to receive real-time updates and easier tracking of your sales tax returns.
Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, the state still requires you to file a return.
Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions. Generally, businesses do this to report Use Tax, which is due when they did not pay sales tax at the time of purchase.
Use Tax Liability – Be prepared to report any use tax owed. Businesses owe use tax on taxable items they purchased for business use where the seller did not collect sales tax.
Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
Filing Frequency Schedule – The state assigns a specific due date for every registered business. In New Jersey, the state only allows a quarterly filing frequency. However, some are required to make monthly payments.To find out your designated schedule, you can check your New Jersey Certificate of Authority documents. You can also use the table in the next section for reference.
Step-by-Step: How to File New Jersey Sales Tax Online
Step 1. Go to the state sales tax portal website – MyNewJerseyStep 2. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 3. Enter your Account Credentials: Log in using your username and password. Check your shared email or phone number, and input the OTP when applicable.Step 4: On the dashboard, scroll to the “Tax Portal-Admin” section. Once you’re in the correct section, click “Online Transactions>File a Form.”Step 5: Choose the appropriate return information from the drop-down menu and then click “Next”Step 6: On the actual tax return form, enter the Gross Sales based on your ecommerce sales tax report. After that, the other necessary fields will automatically compute after clicking “Compute”. Once the automatic computation is done, click “Submit.”Step 7: After submitting your return, you can now make a payment or choose to print a copy of your return. To prevent late payments, make a payment now.Step 8: To complete your return, enter your payment details and then click on “Submit” to make the payment. Step 9: After that, save a copy of your return and/or the payment confirmation. This serves as proof of successful submission. Step 10: Additionally, you can save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common practice.Helpful Tip: You can always click on “Save and Submit Later” to avoid losing your progress. This tip helps in case internet issues, website downtime, or other disruptions interrupt the filing process.
Due Dates
In New Jersey, businesses are required to file a quarterly return (Form ST-50). However, certain high-volume taxpayers are also required to remit monthly payments using the Monthly Voucher form. This form is only for payments and is filed through the New Jersey Tax Portal.To find out if you’re required to make monthly payments, refer to the table below for guidance:
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly Voucher
Must meet BOTH conditions:
If you collected more than $500 in sales tax in the first or second month of the current calendar quarter &
If you collected more than $30,000 in sales and use tax during the prior calendar year
Every month
(for the first and second months of the quarter)
Due every 20th of the month
Quarterly
Required for All Registered Sellers
January – March
April – June
July – September
October – December
April 20
July 20
October 20
January 20
NOTE: If the 20th day falls on a weekend or a legal holiday, the authorities move the due date to the next business day.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. However, New Jersey currently does not offer any timely filing discount. Therefore, the state requires taxpayers to remit the full amount of sales tax collected.
Filing Amended Returns
If you wish to correct a previously submitted return, you may amend it using the NJ Tax Portal. You should correct errors made on a monthly remittance voucher on the quarterly Form ST-50, not by filing an amended monthly voucher.TIP: Generally, for future returns, it’s recommended to have an NJ Tax Portal account to easily track your previously submitted returns and access the ‘File Amended Return’ option.
Refunds
If you overpaid your taxes or the state owes you a refund after amending a return, here’s how you can request a refund. A: Request a Refund Online as a Guest User in NJ Tax Portal
Step 4: On the drop-down list, click on “Request Refund as Guest”
Step 5: Fill out the required fields and then submit your claim.
B: Get a Refund Using Your NJ Tax Portal Account
Step 1: Log in to your NJ Tax Portal account.
Step 2: After that, click the “Online Transactions” option.
Step 3: From the dropdown list, select “Submit Application”
Step 4: On the new page, choose form type “A-3730 Refund Application”
Step 5: After that, fill in the rest of the required fields.
Step 6: Optionally, you can upload additional relevant documents to support your refund claim.
Step 7: Click “Save and Continue” and then review your claim.
Step 8: Lastly, enter your e-signature to finalize your refund application.
NOTE: These are the official instructions provided by the NJ Division of Taxation. If you need visual guidance, you may also watch the state’s video tutorial. Keep in mind that all Sales and Use Tax refund requests must be filed electronically through the NJ Tax Portal. You should NOT mail Form A-3730 to request a Sales and Use Tax refund.
Filing Zero Returns in New Jersey
In New Jersey, the state still requires businesses to file a return even if there is no sales tax to report or pay. To file a zero return in New Jersey, simply enter “0” (zeros) in the fields asking for your total sales tax amount.However, you must know that monthly payments cannot be zero. You do not need to send any payment after filing a zero return. You only need to file Monthly Vouchers if:
Your collected sales tax is more than $30,000 during the prior calendar year.
Your collected sales tax is more than $500 in the first or second month of the current calendar quarter.
Other Filing Methods in New Jersey
If you’re having difficulties filing your New Jersey sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
NOTE: Paper filing is no longer an option. Since April 26, 2025, filing by phone through the NJ Sales and Use Tax EZ TeFile Systems is also no longer available.
Let TaxHero Manage Your New Jersey Sales Tax Returns
TaxHero doesn’t just handle your New Jersey sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!
Filing your Colorado sales tax return is simple with the state’s online system. You can file and pay directly through the ColoradoRevenue Online website, as long as your business is registered to collect and remit sales tax.
This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Colorado’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Colorado:
Colorado Taxpayer Account Number (Sales Tax License) – You’re required to provide your Colorado sales tax account number to file your sales tax return. Once your registration with the Colorado Department of Revenue (CDOR) is approved, you should receive your account details electronically.Additionally, a copy of your Colorado Sales Tax License will be sent via mail as well.
Revenue Online Account Log-in Details – The primary way to file your Colorado sales tax return online is by logging onto your Colorado Revenue Online account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
Taxable Sales – Compile the total taxable sales your business made within the filing period. You’ll need this data to determine how much sales tax you owe and must pay for the filing period.
Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions.
Local Sales Tax Report – Some cities in Colorado impose a local sales tax. Thus, if you have a nexus in those cities, you’re required to file a single return that reports the breakdown of sales by jurisdiction. To do so, you must add the locations or “sites” to your Colorado Revenue Online account. This also applies to non-physical locations for remote sellers doing business in Colorado. For additional guidance, visit the CDOR official webpage.
Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number ahead of time.
Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find out your designated schedule, refer to the information you received from the CDOR upon registration or by logging into your Revenue Online account.
Step-by-Step: How to File Colorado Sales Tax Online
Step 1. Go to the Revenue Online – State of Colorado website.Step 2.Enter your Account Credentials: Log in using your username and password. Check your shared email/phone number and input OTP, when applicable.Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 4. On the dashboard, scroll down to the “Sales Tax” section and then click “File Return”.Step 5.Choose the location(s) where sales are made from the given location list based on your sales tax report by clicking the Location ID.Step 6. Enter the gross sales and applicable deductions made on that location based on your Ecommerce Sales Tax Report. Click “OK” once done. Do the same for all the sites included in your report.Step 7. At the end of the same page, click on “File remaining non-physical sites as $0 returns” if they do not show up in your report. After that, click “Next”.Step 8. Review the summary “Total Tax for All Sites Filed,” which should match the collected tax on your Ecommerce Sales Tax report. After confirming all information is correct, then you can click “Next”. Step 9. Choose if you would like to make a payment or not. Enter the payment account information that you will use and other details. Click Next.Step 10. Mark the “I Agree” check box if you are ready to submit. Click Submit.Step 11. Enter your password again to confirm submission. After that, click OK.Step 12. Keep a copy of the return and/or payment confirmation for your records. This serves as proof of successful submission.Step 13. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.NOTE: If you’re stuck or need more assistance, you can watch Colorado’s video tutorial.
Due Dates
In Colorado, your filing schedule and due dates generally change depending on your monthly collected sales tax. For guidance, refer to the table below.
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
Monthly sales tax collections are more than $600
Monthly
20th day of the month following the reporting period
Quarterly
Monthly sales tax collections are less than $600
January – March
April – June
July – September
October – December
April 20
July 20
October 20
January 20
Annual
Monthly sales tax collection is $15 or less
January 1 – December 31
January 1
Wholesale businesses with a sales tax liability of $180 or less are also allowed to file annually. Businesses that pay more than $75,000 in sales tax are required to pay electronically via Electronic Funds Transfer (EFT). The payment for this is due on the 20th day of the month following the reporting period.NOTE: If the 20th day falls on weekends or legal holidays, the due date is moved to the following business day.
Due Date Filing Extensions
In the event of natural disasters, the CDOR may grant filing and payment due date extensions. These extensions typically align with the Internal Revenue Service’s (IRS) tax relief announcements.It is important to note that even if the IRS grants an extension, affected taxpayers must still contact the CDOR if they receive a notice of deficiency for penalties and interest for a return filed or tax paid during the extension period.To check if any extensions have been declared, visit the IRS Newsroom for the latest updates. Otherwise, you can contact the CDOR for extension inquiries through the following options:
Call for additional assistance via Taxpayer Helpline 303-238-SERV (7378)
Respond to a notice of deficiency and follow the instructions in the notice
If you filed your return late due to a natural disaster, the CDOR allows you to request a penalty waiver.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Colorado, businesses can claim their Service Fee or Vendor Fee. This discount is allowed on timely reported sales. How to Claim: Eligible filers can keep a percentage of their collected sales tax if their state’s net taxable retail sales aren’t greater than $1 million during the filing period. The maximum allowed Service Fee is capped at $1,000 per filing period. Typically, the method used and the percentage to calculate your claimable service fee may change periodically. As of 2025, the current state service fee rate is 4.00%.To keep up with the service fee rate or check additional instructions, visit the CDOR “Service Fee” page.
Filing Amended Returns
If you filed an inaccurate report (e.g., miscalculated taxes, missing information, etc.), you can amend your return online. To do so, follow these simple steps:
Step 1: Log in through the Revenue Online website.
Step 2:Locate the return you wish to amend. Afterward, select the “File/Amend and View Returns/Payment” option.
Step 3:On the new page, find the return you want to amend under the “View/Manage Periods” section.
Step 4:Select “View/Amend” under the “Actions to Be Taken” category. On the next page, select “Amend” in the top right corner of the page.
Step 5:Choose the location where your return needs to be amended. Whenever you click on the location ID, this should prompt a pop-up screen. Select “Yes” under the category asking “Would you like to amend the return for this site?”
Step 6:Now, you can correct the details previously submitted in your sales tax return. Carefully go through each field and adjust the information accordingly.
Step 7:Once everything is complete, review the details and submit your amended return. If the return is underpaid, you must pay the missing due taxes as well. Repeat the steps for each location where you need to amend a return.
Need visual guidance? Watch Colorado’s official tutorial.NOTE: Don’t forget to tick the “Amended Return” box. Amended returns completely replace the originally submitted return. The applicable service fee you can claim should align with the reporting period of your return.
Refunds
Under Colorado’s Code of Regulations 39-26-703(2)(e), filers can deduct overpaid taxes on their next sales tax returns instead of requesting a refund. This is generally done by reporting a credit on the next return filed. If your business is no longer registered with the CDOR, or if the overpayment is for a significant amount that you cannot recoup through a deduction, the state instructs you to request a refund. There are two main methods for a seller/retailer to request a refund for a previous sales tax return overpayment.First, download the Form DR 0137 – Seller/Retailers Claim For Refund form. Complete the document and mail it to the address provided on the form. The second option involves utilizing the Revenue Online website. Refer to the instructions below:
Step 1:Before submitting a refund request, review the “Claim For Refund” instructions form first. This form specifies the necessary documentation for your claim.
Step 4:Choose “Submit a Claim for Refund (DR 0137)” and then complete the fields.
Step 5:Submit your claim and wait for the CDOR’s response. Do not mail a copy of the request.
NOTE: To submit additional documents related to your refund claim, you can upload them through the Revenue Online messaging system. You can also watch Colorado’s official video tutorial for requesting refunds.
Filing Zero Returns in Colorado
Colorado requires taxpayers to file returns even if they have no taxable sales to report.Failure to file a return results in the CDOR automatically filing the return on your behalf. This means the CDOR will also calculate the estimated balance you must pay, even if you made no taxable sales. This remains in effect until you file the correct zero return yourself. If you do not file a zero return after the CDOR sends a no-file notice, the state may close your tax account. At the same time, your sales tax license also becomes revoked.To prevent this, you have two solutions:
Close your Colorado sales tax account – If you no longer plan to do any business in Colorado, you can request the state to close your account. Consequently, this prevents any late filing penalties as well.
File a zero sales tax return – If you wish to maintain your Colorado sales tax account, you must comply with the state’s requirements. For instructions on how to file a zero return, refer to the steps below.
Here’s how you can file a zero sales tax return in Colorado.
Step 1: Follow the same procedures as filing a normal return. This means you must log in through your Revenue Online account first.
Step 2: Enter zero (0) in the appropriate fields to indicate that you are filing a zero sales tax return.
Step 3:Remember that each location requires separate returns. Select the correct location where you want to file a zero return. If your sales tax account has non-physical locations, you have the option to click “File remaining non-physical sites as $0 returns.”
Step 4:Review all the submitted information and ensure all locations are properly selected.
Step 5:Complete any remaining sections and then submit your zero return.
In Colorado, businesses generally are allowed to partake in a “Special Sales Event.” This event permits sellers to make taxable sales at a location different from their normal place of operations.Examples of special event sales are trade shows, fairs, festivals, holiday markets, and antique shows.You must have a special events license to qualify as a seller during such events, unless the event organizer has obtained a license to collect and remit tax on behalf of the vendors.Moreover, you’re required to file your special event sales tax return on the 20th of the month following the month in which the special event began, if you have not remitted the sales tax collected to the event organizer.To file a special event sales tax return, there are 2 methods. First is filing by mail using the Form DR 0098 – Special Event Retail Sales Tax Return. Complete the necessary fields, then mail it to the address provided on the form. The next option involves using the Revenue Online website. Here are the instructions from the CDOR:
Go to the Revenue Online website. This situation does not require a login.
Locate the “File a Special Event Sales Tax Return” option under the “Sales and Use Tax” category.
Afterward, indicate the period of the event through the “Special Event Date” dropdown list.
Review the displayed information thoroughly before proceeding to the next step.
The site generally adds most events to the list and sorts them by location. However, not all special events have available online forms that you can use.
If you can see the event you participated in, select it, then choose “Next.”
Select the correct form applicable to your special event.
If the event you attended isn’t found, select “Click here if the event you attended is not available.”
Next, fill in all the required information in the fields until you complete all mandatory prompts. After that, you can now submit your special event sales tax return in Colorado.
For additional instructions, you may watch Colorado’s video tutorial.
Other Filing Methods in Colorado
If you’re having difficulties filing your Colorado sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
Spreadsheet Filing – If your business has multiple locations and doesn’t use any sales tax software for filing returns, Colorado presents this option. First, you must download the latest spreadsheet template to file via spreadsheet upload.For additional instructions on how to become an approved spreadsheet filer, see Colorado’s Spreadsheet Filing Handbook. You may also watch the state’s official video tutorial for more guidance.
Let TaxHero Manage Your Colorado Sales Tax Returns
TaxHero doesn’t just handle your Colorado sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!
If you run an Ecommerce or CPG business in Ohio, securing an Ohio Resale Certificate is a smart move. It helps protect your margins and streamline your operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Ohio sales tax laws.
Understanding Resale Certificates in Ohio
What is an Ohio Resale Certificate?
In Ohio, a Sales and Use Tax Blanket Exemption Certificate is a document issued by theOhio Department of Taxation that allows businesses to:
Purchase goods without paying sales tax, as long as these goods are intended for resale to their customers in the normal course of their business.
Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation once at the wholesale level and again at the point of retail sale.
However, an Ohio resale certificate is not a blanket exemption from all sales tax obligations. Businesses must still collect and remit sales tax on taxable sales to consumers.
Why do you need a Resale Certificate in Ohio?
Obtaining a resale certificate in Ohio offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
Avoid Paying Sales Tax on Inventory: The most direct benefit is that you can purchase inventory and materials for resale without paying Ohio‘s sales tax upfront.
Maintain Competitive Pricing: Lower costs give you more room to offer better prices, especially in competitive markets.
Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Ohio’s sales tax laws and regulations to avoid penalties.
When filling out Form STEC B, a purchaser must include the vendor’s license number to identify that it is registered with the Ohio Department of Taxation and authorized to make tax-exempt purchases for resale.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
An Ohio Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. An Ohio Resale Certificate (STEC B), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in Ohio?
Businesses that purchase goods for resale can use an Ohio Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Ohio Sales Tax Permit.
How to Get a Resale Certificate in Ohio: A Step-by-Step Guide
Getting a resale certificate in Ohio is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the Ohio Department of Taxation. Only businesses with a valid Ohio Sales Tax Permit can use a resale certificate.
2. Get an Ohio Sales Tax Permit: If you don’t already have one, apply for an Ohio Sales Tax Permit through the Ohio Business Gateway website. This permit is required before you can issue or use a resale certificate.
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
Your business legal name and any trade names.
Your business address and contact information.
Your Ohio license number (if already obtained)
Your business type (e.g., sole proprietorship, LLC, corporation).
Your reason for exemption
Your authorized signature and date
4. Complete Form STEC B:Download and fill out the Ohio Sales and Use Tax Blanket Exemption Certificate (Form STEC B) from the Ohio Department of Taxation website. In addition, you’ll present this form to your suppliers when making tax-exempt purchases.
5. Submission: No submission required in Ohio. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use Form STEC B, but you’ll need a valid Ohio Sales Tax Permit, which costs $25 to register. To see if there’s a cost for the permit, check out our guide onSales Tax Permit fees.
7. Understand Renewal Requirements: Your Ohio resale certificate remains valid only while your Sales Tax Permit is active. To maintain your ability to make tax-exempt purchases for resale, you must renew your Ohio Sales Tax Permit as the state requires.
How to Use a Resale Certificate in Ohio
To properly utilize your resale certificate in Ohio when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Ohio Sales and Use Tax Resale Certificate to your supplier at the time of purchase.
Ohio generally doesaccept resale certificates issued by other states. However, there might be specific conditions:
Good Faith Acceptance:Vendors in Ohio will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate, and Ohio also participates in the Streamlined Sales Tax Agreement (SSTA), which facilitates acceptance of a uniform certificate.
If you are an out-of-state business purchasing from a vendor in Ohio and plan to use your home state’s resale certificate, provide it at the time of purchase, often by completing an Ohio exemption form (STEC B or STEC U) with your out-of-state registration information.
It’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.
For more information regarding sales tax exemption laws in Ohio, you may visit the state website.
Multi-Jurisdictional Resale Certificates
A multi-jurisdictional resale certificate is a standardized form to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Ohio might encounter:
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form:This is a widely recognized form accepted by a significant number of states (though not all). Ohio accepts this form, provided it is properly completed. For Ohio-based buyers, it should include their Ohio Sales Tax Permit number. Out-of-state purchasers should also include their home state’s registration number where indicated. You can find this form on theMultistate Tax Commission (MTC) website.
Streamlined Sales Tax (SST) Certificate of Exemption: The state of Ohio became an associate member of Streamlined Sales Tax on October 1, 2005, and a full member on January 1, 2014. It may also be used to notify vendors or sellers of direct payment authority, of a claim of multiple points of use, or, under Section 5739.033(D) of the Ohio Revised Code, of a direct mail claim by a purchaser of direct mail. You can find more information about the SST and its member states on theStreamlined Sales Tax Governing Board website.
Businesses need to verify whether Ohio accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
Responsibilities When Using or Accepting a Resale Certificate in Ohio
Buyer Responsibilities
When you use an Ohio resale certificate, you must ensure it applies only to purchases of goods or services you intend to resell. However, using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
Ohio-based buyers: Provide a fully completed Form STEC B to your suppliers for qualifying purchases.
Out-of-state buyers: While Ohio prefers its resale certificate, Ohio vendors will accept a valid certificate from your home state under specific conditions, as long as you properly document the tax-exempt purchase and follow state regulations.
Seller Responsibilities
As a seller in Ohio, accepting a resale certificate comes with the responsibility of verifying and retaining proper documentation for tax-exempt sales. You must:
Accept the certificate in good faith
Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature.
Reject the certificate if the items aren’t for resale (e.g., personal or business use)
Keep records for at least 4 years: Use a properly completed resale certificate as your official proof for not collecting sales tax. You must retain it in your records for at least four years in case of a sales tax audit by the Ohio Tax Commissioner.
Frequently Asked Questions About the Ohio Resale Certificate
Are There Penalties for Misusing a Resale Certificate in this State?
Yes. Improper use of a resale certificate, such as using it for personal or non-resale purchases, can result in serious penalties. Always use Form STEC B correctly and only for qualified resale purchases to avoid issues.
Does an Ohio Resale Certificate Expire?
The resale certificate (Form STEC B) has no expiration date. However, it is only valid while your Ohio Sales Tax Permit remains active. If your permit is revoked or inactive, your resale certificate becomes invalid.
How Do I Verify a Resale Certificate in Ohio?
If you’re a seller in Ohio, here’s how to validate a buyer’s resale certificate:
Scroll down to “Key Sales & Use Tax Resources” & read the “Instructions for Active Vendors License List.”
Download the spreadsheet, “List of active vendors.”
Find the business you seek using the information provided to you on the purchaser’s Form STEC B.
How TaxHero Can Help
Managing sales tax compliance and resale certificates in Ohio doesn’t have to be complicated. TaxHero simplifies the process, from keeping your Ohio Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your Ohio resale certificate process today!
If you run an Ecommerce or CPG business in North Carolina, securing a North Carolina Resale Certificate is a smart move to protect your margins and streamline operations.This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with North Carolina sales tax laws.
Understanding Resale Certificates in North Carolina
What is a North Carolina Resale Certificate?
In North Carolina, a Sales and Use Tax Certificate of Exemption (Form E-595E) is a document issued by theNorth Carolina Department of Revenue NCDOR that allows businesses to:
Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation—once at the wholesale level and again at the point of retail sale.However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Why do you need a North Carolina Resale Certificate?
Obtaining a resale certificate in North Carolina offers several significant advantages for businesses that purchase goods for resale.Here are some key benefits:
Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying North Carolina’s sales tax upfront.
Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the North Carolina market. This can be a crucial advantage, especially in price-sensitive industries.
Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with North Carolina’s sales tax laws and regulations to avoid penalties.
In North Carolina, the specific form required for a resale certificate is the Form E-595E.When filling out Form E-595E, a purchaser must include their North Carolina taxpayer number to identify that it is registered with the NCDOR and authorized to make tax-exempt purchases for resale.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
A North Carolina Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A North Carolina Resale Certificate (Form E-595E), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in North Carolina?
Businesses that purchase goods for resale can use a North Carolina Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid North Carolina Sales Tax Permit.
In case you’re not registered in North Carolina, you may provide the following alternatives:
For future transactions, it’s best to register your business in North Carolina to stay tax-compliant.
How to Get a Resale Certificate in North Carolina: A Step-by-Step Guide
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the North Carolina Department of Revenue. If you are an out-of-state buyer, then you must be a registered business in your home state. Only businesses with a valid Sales Tax Permit or an exemption number can use a resale certificate.
2. Apply for a North Carolina Exemption Certificate Number: This option is for commercial fishermen, loggers, or wildlife managers without a seller’s permit number. You may apply via the NCDOR state website.
3. Get a North Carolina Sales Tax Permit: If you don’t already have one, apply for a North Carolina Sales Tax Permit through the NCDOR website. This step is necessary if you don’t have any other valid sales tax permits.
Need help? Read our blog: How to Get a Seller’s Permit in North Carolina4. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
Your business legal name and any trade names.
Your business address and contact information.
Your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if you’re a sole proprietor.
Your North Carolina sales tax permit number (if already obtained)
Your home state sales and use tax registration number (if not registered in North Carolina)
Your exemption certificate number (if you don’t have any active seller’s permit account)
Your business type (e.g., sole proprietorship, LLC, corporation).
5. Complete Form E-595E: Download and fill out the North Carolina Sales and Use Tax Certificate of Exemption (Form E-595E) from the NCDOR’s website. You’ll present this form to your suppliers when making tax-exempt purchases.
6. Submission: No submission required in North Carolina. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
7. Pay Any Applicable Fees: There’s no cost to use Form E-595E, but you’ll need a valid North Carolina Sales Tax Permit. To see if there’s a cost for the permit, check out our guide on Sales Tax Permit fees.
8. Understand Renewal Requirements: As long as your NC Sales and Use Tax Permit remains active, then your Form E-595E won’t expire. While the permit itself generally doesn’t require periodic renewal, you must update the NCDOR and your certificates if business details (e.g., name, address, ownership, sales type) or the transaction nature have changed. This ensures that all records remain accurate.
How to Use a Resale Certificate in North Carolina
To properly utilize your resale certificate in North Carolina when making tax-exempt purchases for resale, you’ll need to present a valid copy of your North Carolina Sales and Use Tax Certificate of Exemption to your supplier at the time of purchase.North Carolina generally does accept resale certificates issued by other states. However, there might be specific conditions:
Good Faith Acceptance: Vendors in North Carolina will typically accept an out-of-state resale certificate in good faith, provided it contains all the necessary information (buyer’s name, address, seller’s permit number from the issuing state, reason for exemption, etc.)
Reciprocity: The acceptance might be based on reciprocal agreements with the state that issued the certificate.
An out-of-state business purchasing from a vendor in North Carolina and planning to use its home state’s resale certificate must provide it at the time of purchase. Generally, it’s always a good idea to confirm the vendor’s policy on accepting out-of-state certificates beforehand.For more information regarding sales tax exemption laws in North Carolina, you may read the state’s official regulations.
Multi-Jurisdictional Resale Certificates
A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase. However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.There are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in North Carolina might encounter:
Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). North Carolina vendors typically accept the form. However, you must provide all the required information, including your seller’s permit number. Out-of-state purchasers should include their home state’s registration number.You can find this form on theMultistate Tax Commission (MTC) website.
Streamlined Sales Tax (SST) Certificate of Exemption: North Carolina is a member of the Streamlined Sales Tax Governing Board. In fact, the Form E-595E itself is an SST Certificate. To learn more about North Carolina’s membership in SST, visit theNCDOR’s website.
Under NCDOR’s official list of usable forms, these multi-jurisdictional certificates are confirmed to be valid.
Still, it’s best to ask your suppliers beforehand which form they would prefer to accept. In general, this is to avoid any audit issues and for the sake of a smooth transaction.
Responsibilities When Using or Accepting a North Carolina Resale Certificate
Buyer Responsibilities
You are responsible for ensuring that you use a North Carolina resale certificate only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
North Carolina-based buyers: Provide a fully completed Form E-595E to your suppliers for qualifying purchases. Additionally, you must prepare your sales and use tax registration number or exemption number as required by the NCDOR.
Out-of-state buyers: Ensure all necessary information is filled out accordingly, which includes your business name, address, sales tax number (or equivalent), and a clear resale statement. If you don’t have a sales tax permit, then you must apply for an exemption number instead.
Always keep a copy of your resale certificate as proof of your transactions. This is good practice to help you in case of future audits, which may happen once in a while.
Seller Responsibilities
As a seller in North Carolina, accepting a resale certificate comes with a variety of responsibilities. Such as verifying and retaining proper documentation for tax-exempt sales. On the other hand, you must also:
Accept the certificate in good faith
Or validate the certificate via NCDOR’s online registry(only for registered North Carolina buyers with a taxpayer account number)
Ensure it includes all required information: buyer’s name, address, sales tax permit number (or equivalent), reason for exemption, and signature
Reject the certificate if the items aren’t for resale (e.g., personal or business use)
Keep records of the transaction: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records indefinitely in the event of a sales tax audit by the NCDOR.
Frequently Asked Questions About the North Carolina Resale Certificate
Are There Penalties for Misusing a North Carolina Resale Certificate?
Yes. Misusing a North Carolina resale certificate leads to a $250 penalty. Learn more via the NCDOR Penalties and Interests page.
Does a North Carolina Resale Certificate Expire?
The resale certificate (Form E-595E) has no expiration date. However, it is only valid while your Sales Tax Permit remains active. In conclusion, you must keep your Sales Tax Permit active to stay tax-compliant.
How Do I Verify a North Carolina Resale Certificate?
If you’re a seller in North Carolina, here’s how to validate a buyer’s resale certificate:
Request a completed Form E-595E from the buyer.
Locate the North Carolina Taxpayer ID number on the form. If they’re not registered in North Carolina, then you must check their home state’s sales tax permit number instead.
Use the NCDOR Online Registryto confirm the permit is active. However, for out-of-state buyers, you might have to use their home state’s website for verification instead.
How TaxHero Can Help
You don’t have to complicate managing sales tax compliance and resale certificates in North Carolina. TaxHero simplifies the process—from keeping your North Carolina Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.Schedule a Demo to see how TaxHero can streamline your North Carolina resale certificate process today!
Filing your Nevada sales tax return is simple with the state’s online system. You can file and pay directly through the My Nevada Tax portal, provided your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Nevada’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Nevada:
Nevada Taxpayer Account Number (Sales Tax Permit) – You’re required to provide your Nevada Account ID to file your sales tax return. Once the Nevada Department of Taxation approves your registration, it will send your documentation via mail. You can find this number on yourNevada Sales Tax Permit document.
My Nevada Tax Log-in Details – The primary way to file your Nevada sales tax return online is by logging onto your My Nevada Tax account. To access the site, ensure you have your log-in credentials ready (e.g., your username and password).
Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
Taxable Sales – Compile the total taxable sales your business made within the filing period.
Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. This applies to both in-state and out-of-state transactions. This rule also applies to items you purchase for use or consumption in Nevada when you did not pay sales tax at the time of purchase (creating a Use Tax liability).
Local Sales Tax Report – Nevada requires businesses to file a local sales tax report as well. This means you must list all your sales in each city, county, or other local jurisdiction in Nevada.
Bank Account and Routing Number – Select which bank account you want to use for paying the due taxes in your report. Prepare your bank details and routing number in advance.If paying via ACH debit through My Nevada Tax, you must provide your bank with NDOT’s specific ACH Company ID, P886000022, to ensure your bank successfully processes the payment and to avoid penalty charges.
Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find your designated schedule, check your Nevada Sales Tax Permit document.To find your designated schedule, check your Nevada Sales Tax Permit document or your account summary in the My Nevada Tax portal.
Step-by-Step: How to File Nevada Sales Tax Online
Step 1. Go to the My Nevada Tax website.Step 2.Enter your Account Credentials: Log in using your username and password. Check your shared email/phone number and enter the OTP when applicable.Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 4. On the dashboard, click File Return to begin the filing process.Step 5. Select the appropriate options, then click Next to proceed.Step 6. Enter the sales amount by selecting the county name, clicking the pencil icon, or using the + Add County Details link. Once all entries are updated, click Next.Step 7. Review the balances displayed on the page, then click Next to continue.Step 8. Review the balances displayed on the page, then click Next to continue.Step 9. Choose your preferred payment option from the available methods.Step 10. Enter your bank information, schedule the payment date, and click Submit once all details are complete.Step 11. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Due Dates
Nevada sales and use taxes are due and payable on the last day of the month following the report period. If the due date falls on a weekend or state holiday, the deadline is moved to the next business day.
Beginning February 2026, the state of Nevada has changed the due date for sales tax returns. Instead of the last day of the following month, the due date now falls on the 20th day of the month.
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
Mandatory if taxable sales are more than $10,000 per month.
Monthly
20th day of the following month
Quarterly
If taxable sales are less than $10,000 per month.
January – March
April – June
July – September
October – December
April 20
July 20
October 20
January 20
Annual
If taxable sales are less than $1,500 in the previous year.
January 1 – December 31
January 20
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. In Nevada, a discount, known as the Collection Allowance, is available on timely reported sales tax at a fixed rate of 0.25% (0.0025) of the tax due. The My Nevada Tax system automatically calculates this when you file and pay by the due date. There is no Collection Allowance available for Use Tax.
Filing Amended Returns
While NDOT utilizes the My Nevada Tax platform for efficient original submissions, the online portal now streamlines the process for correcting previously filed returns. Nevada currently offers a dedicated online function to amend a Sales/Use Tax return.Taxpayers must amend a return using one of two precise manual methods:Method A: Amend Electronically via My Nevada Tax
The filer must log into their My Nevada Tax account and access the “Filings” section.
From there, they can select the option to amend a previously filed return for the period requiring correction.
Method B: Amend Manually By Mail
The filer must obtain a copy of the original Sales/Use Tax return form (REV-F013) or a blank form for the period requiring correction.
The word “AMENDED” must be clearly indicated on the form by checking the designated box or by writing the word clearly in black ink in the upper right-hand corner of the form.
The original, incorrect figures must be line-through in black ink while ensuring the figures remain legible. The corrected figures are then entered next to or above the lined-through amounts.
The amended return must be accompanied by a written explanation and complete documentation substantiating the basis for the credit claim or correction.
The alternate Spreadsheet Submission method is generally reserved for special circumstances and should be confirmed with the NDOT.Suppose you do not file and pay online. In that case, you must mail all amended returns, along with supporting documentation and any additional payment (including applicable penalty and interest), to the Department of Taxation.
Refunds
If the amendment results in an overpayment and a credit is due, the Department of Taxation processes the request internally. The Department requires the taxpayer to wait for written notification confirming the processed credit before applying it to current or future tax liabilities.
Filing Zero Returns in Nevada
Nevada strictly requires continuous reporting. Once a business obtains a seller’s permit, it must file a return for every assigned reporting period, even if the business made no taxable sales.Suppose no taxes are due for the reporting period. In that case, a “zero return” must be submitted electronically through My Nevada Tax no later than midnight Pacific Time on the return due date. Failure to file a zero return constitutes a missed filing obligation and will result in penalties and interest charges.
Other Filing Methods in Nevada
If you’re having difficulties filing your Nevada sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
File by Mail– If you choose to file a paper return, you must use the official Combined Sales and Use Tax Return (REV-C058, often referred to by its former number REV-F013), which you can download from the Department of Taxation website. The return must be accompanied by a check or money order made payable to the Nevada Department of Taxation. They do not accept cash payments. Note that the Department of Taxation strongly encourages all taxpayers to use the My Nevada Tax online portal, as paper returns may take longer to process.
Let TaxHero Manage your Nevada Sales Tax Returns
TaxHero doesn’t just handle your Nevada sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself. Don’t wait until the next deadline, schedule your demo today!
Filing your Missouri sales tax return is simple with the state’s online system. You can file and pay directly through MyTax Missouri, provided your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Missouri’s sales tax rules.
What You Need Before Filing
Before filing your sales tax return, you must prepare specific records to ensure your report is accurate. Here are the standard documents required to file a sales tax return in Missouri:
Missouri Taxpayer Account Number (Sales Tax License) – You’re required to provide your Missouri sales and use tax account number, officially known as the Missouri Tax Identification Number (MOID). Once the DOR approves your registration, you will receive this documentation via a welcome letter. Additionally, the DOR will send you a copy of yourMissouri Sales Tax License via mail.
My Tax Missouri Log-in Details – The primary method for online filing is through the DOR’s My Tax Account portal. It is necessary to have the correct username and password to access the account and begin the filing process. You can also file as a “guest” user if you have your MOID and the Personal Identification Number (PIN).
Total Sales – Gather your total revenue during the filing period. This includes all sales, whether they’re taxable or not. Even if you currently have no sales records, you’re still required to file a return.
Taxable Sales – Compile the total taxable sales your business made within the filing period.
Taxable Purchases – Verify the total amount of taxable purchases your business spent within the filing period. Businesses require the seller to self-report and remit “use tax” on purchases for which the seller did not collect the appropriate sales tax. This commonly applies to taxable items purchased from out-of-state vendors or online, where sales tax is not charged. You must report this on the sales and use tax return (Form 53-1) or, if only registered for use tax, on a separate Vendor’s Use Tax (Form 53-V) or Consumer’s Use Tax (Form 53-C) return.
Local Sales Tax Report – Missouri requires businesses to file a local sales tax report as well. This means you must list all your sales in each city, county, or other local jurisdiction in Missouri.
Bank Account and Routing Number – To pay any taxes due, businesses will need to have their bank account and routing number ready to facilitate an electronic payment via ACH direct debit from a checking or savings account.
Filing Frequency Schedule – The state assigns a specific due date for every registered business. To find out your designated schedule, you can check your Missouri Sales Tax Permit document or the official correspondence received from the DOR following registration.
Step-by-Step: How to File Missouri Sales Tax Online
Electronic filing through MyTax Missouri is the Department of Revenue’s preferred method, offering the fastest processing times. The online interface guides the taxpayer through the required data fields, ensuring logical calculation of the liability.Step 1. Go to the MyTax Missouri website.Step 2.Enter your Account Credentials: Log in using your username and password. Check your shared email/phone number and input OTP, when applicable.Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).Step 4. Select Online Transactions and click File a Form.Step 5. Select appropriate options from the drop-down menu, then click Next to continue.Step 6. Enter the sales amount for each jurisdiction as required, then click Calculate.Step 7. After reviewing the calculated figures, click Proceed to Summary.Step 8. Review all balances and verify that the information is accurate, then click Next.Step 9. Confirm that you’re ready to submit the return by clicking Yes Submit Return.Step 10. Select Make a Payment Now to proceed with the payment process.Step 11. Enter the amount to be paid and select the appropriate payment method, then click Next.Step 12. Enter your bank account information as requested.Step 13. Schedule your payment date, then click Submit.Step 14. Select the Confirm button to finalize and complete the transaction.Step 15. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Due Dates
Missouri’s due dates and filing frequency depend on the total amount of state sales tax (4.225%) you collected during the period, not the combined state and local rate.
If a standard due date falls on a weekend or a state or federal holiday, the system automatically moves the deadline to the next business day.
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
$500 or more in state tax collected per month
Monthly
20th day of the month following the reporting period
Quarterly
Less than $500 in state tax collected per month, but $200 or more per quarter
January – March
April – June
July – September
October – December
April 30
July 31
October 30
January 30
Annual
Less than $200 in state tax collected per quarter
January 1 – December 31
January 31 of the following year
Timely Filing Discount
In Missouri, the state allows a discount on timely reported sales tax when you file the return and pay the tax due on or before the required date. The DOR also considers your return postmarked if you send it on or before the required due date.Missouri grants a 2% timely payment allowance (vendor’s compensation), calculated on the total amount of tax due. You must subtract this amount from your gross liability before you remit the payment.
If a metered postmark differs from the U.S. Postal Service postmark, the U.S. Postal Service postmark serves as the official evidence of timely filing.
Filing Amended Returns
If a business discovers an error or omission on a previously filed sales tax return, it must file an amended return to correct the inaccurate figures for gross receipts, taxable sales, exemptions, or the complex local tax breakdown.You don’t need a special form to file an amended return. You can use a copy of your original return or a new blank form (Form 53-1 or 53-V). Mark the return as amended by checking the “Amended Return” box and writing “AMENDED RETURN” clearly at the top of the form.Keep in mind that you cannot file negative sales tax returns. If your credits exceed the tax you collected, file an amended return for the period in which you reported the original sales and attach a separate claim form, such as the Seller’s Claim for Sales or Use Tax Refund or Credit (Form 472S), to request a refund or credit.You need to file an amended return in situations such as:
The original return contained incorrect amounts and needs correction.
You received an exemption certificate after filing the return and need to make adjustments.
You filed the wrong type of return, such as reporting use tax instead of sales tax.
Filing Zero Returns in Missouri
Missouri requires filing zero returns. Once a business is registered, you are required to file a return after each assigned collection period, regardless of whether any sales tax was collected or if there were no sales/purchases.Failure to file a return, even a zero return, can result in estimated assessments, revocation of your sales tax license, and property liens.
Other Filing Methods in Missouri
If you’re having difficulties filing your Missouri sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
File by Mail (Form 53-1) – Businesses can file a paper copy of the Missouri Sales Tax Return (Form 53-1). While forms can be downloaded from the DOR website, paper submissions typically result in a significant delay in processing time compared to electronic filing.
Paper returns, including zero returns, should be mailed to:Missouri Department of RevenueTaxation DivisionP.O. Box 840Jefferson City, MO 65105-0840
Let TaxHero Manage Your Missouri Sales Tax Returns
TaxHero doesn’t just handle your Missouri sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!
Filing your Washington, D.C. sales tax return is simple with the city’s online system. You can file and pay directly through the MyTax.DC.gov portal, as long as your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Washington, D.C.’s sales tax rules.
What You Need Before Filing
Before filing your Washington, D.C. sales tax return, make sure you have the following in place:
Sales Tax Permit / Certificate of Registration – Your Washington, D.C. tax account number, issued when you register with the Office of Tax and Revenue (OTR).
MyTax.DC.gov Log-in Details – You’ll need your username, password, and access to the account under which you file sales and use tax.
Total Sales – The full revenue your business earned during the period (taxable + non-taxable).
Taxable Sales & Taxable Purchases – Detail of sales subject to tax plus any purchases where you owe use tax.
Relevant Local/City Data – Although D.C. uses a uniform sales tax rate for most transactions, maintain accurate records of where sales occurred (if you have multiple locations) or if special rates apply to your sales (e.g., parking, liquor, or restaurant meals).
Bank Account/Routing Info – For payment through the online system (ACH Debit or other electronic method).
Filing Frequency Schedule – D.C. assigns a frequency (monthly, quarterly, or annual) based on your sales volume.
Step-by-Step: How to File Washington D.C. Sales Tax Online
The online filing process in Washington, D.C. is quick and straightforward through the MyTax.DC.gov portal. Follow these steps to ensure your return is accurate and properly submitted. Step 1. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify). Step 2. Go to the MyTax.DC.gov portal.Step 3. Enter your account credentials. Log in using your username and password. Step 4. Check your shared email or phone number for the one-time password (OTP) and input it when prompted.Step 5. On your dashboard, click on “View Returns.”Step 6. Click “File Now” next to the filing period you wish to submit.Step 7. Read the introduction and answer the return information questions. Click Next.Step 8. Answer the return period information. Click Next.Step 9. Enter your sales tax information, referencing your Ecommerce Sales Tax Report. Click Next.Step 10. On the main tax return form, fill out the required fields using the data from your Ecommerce Sales Tax Report. Click Next.Step 11. Review all data carefully and ensure it matches your Ecommerce Sales Tax Report. Click Next.Step 12. Choose your preferred payment method, then click Next.Step 13. Enter your payment account information and other details. Click Next.Step 14. Re-enter your MyTax.DC.gov password to confirm and authorize submission, then click Submit.Step 15. Save your return and payment confirmation as proof of successful submission. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option. Helpful Tip: You can always click “Save Draft” to avoid losing progress during filing in case of interruptions like internet loss or system downtime.
Due Dates
In Washington, D.C., the Office of Tax and Revenue (OTR) assigns filing frequencies based on a business’s total taxable sales volume. The standard due date for filing and paying sales tax is the 20th day of the month following the reporting period.
To avoid a delinquency notice, a return must be filed even if no sales were made or no sales or use tax is due.
Note: When the due date falls on a weekend or legal holiday, the return is due the next business day.
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
Standard for most filers unless specified otherwise
Each calendar month
20th of the following month
Quarterly
Assigned when less frequent filing is permitted
Q1: Jan–Mar
Q2: Apr–Jun
Q3: Jul–Sep
Q4: Oct–Dec
Apr 20, Jul 20, Oct 20, Jan 20
Annual
For very low-volume filers as allowed by OTR
January–December
January 20
Timely Filing Discount
Currently, Washington, D.C. does not offer a vendor allowance or a timely filing discount for Sales and Use Tax returns. All sales tax filings and payments must be submitted by their original due dates to avoid penalties and interest. The Office of Tax and Revenue (OTR) emphasizes that extensions available for income or franchise taxes do not apply to sales and use tax obligations. Even if you’re unable to pay the full balance due, you must still file the return on time to minimize additional penalties.
Filing Amended Returns
If you discover an error after submitting your sales and use tax return, you can file an amended return through MyTax.DC.gov. To file an amended return:
Log in to your MyTax.DC.gov account.
Locate your Sales and Use Tax account from the dashboard.
Select File, View, or Amend Returns.
Choose the return period you want to correct and click Amend.
Update the incorrect fields and submit the amended return electronically.
If the amendment results in an overpayment, you must also submit Form FP-331, Claim for Refund, through the same portal. Both the amended return and refund claim are required for processing.
Refunds
If you overpaid your D.C. sales or use tax, you can request a refund by following these steps: File an amended return reflecting the overpayment. Submit Form FP-331 (Claim for Refund) through MyTax.DC.gov. Refund requests must be made within three years of the original return’s due date or within two years of payment, whichever is later. Refunds are not processed without both documents submitted together.
Filing Zero Returns in Washington D.C.
Even if your business made no sales during the reporting period, you are still required to file a zero return. To file:
Log in to MyTax.DC.gov.
Access your Sales and Use Tax account and select the period.
Choose “No Payment Needed” when prompted for payment options.
Submit the return as usual.
Filing zero returns keeps your account in good standing and prevents unnecessary penalties.
Other Filing Methods in Washington D.C.
If you’re having difficulties filing your Washington D.C. sales tax return online, you can try other options.
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
Paper Filing Waiver: The only exception to the electronic mandate is if your business has received an official electronic filing waiver from the DC Office of Tax and Revenue (OTR). br_spacer]
Let TaxHero Manage Your Washington D.C. Sales Tax Returns
TaxHero doesn’t just handle your Washington D.C. sales tax return; we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!
Filing your California sales tax return is simple with the state’s online system. You can file and pay directly through the CDTFA Online Services, as long as your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with California’s sales tax rules.
What You Need Before Filing
Before you start your California sales tax return, it’s important to gather the right information so your filing is accurate and complete. Here are the standard items you should have ready:
California Seller’s Permit or Sales and Use Tax Account Number: This is your official identification number issued by the CDTFA. You’ll need it to log in and file your return.
CDTFA Online Services Login: Make sure you have your username and password ready for the CDTFA Online Services Portal. If you haven’t set this up yet, you’ll need to register first before filing.
Total Sales for the Filing Period: Collect records of all your gross sales from every channel, including Shopify, Amazon, in-person sales, and other platforms. California requires you to report all sales, not just taxable ones.
Taxable and Nontaxable Sales: Break down your sales into taxable and exempt categories. It ensures you only pay tax on what’s required and that you can properly claim exemptions.
Purchase Records (if applicable): If your business made purchases without paying sales tax at the time of sale, you’ll need those figures to calculate use tax.
Local District Tax Information: California has multiple district tax rates that vary by city and county. Be prepared to report sales by location if you made taxable sales in a district where you are engaged in business. For many companies, this means reporting sales from their place of business; for businesses with sales exceeding a certain economic nexus threshold, it may apply to all districts statewide.
Payment Method: Have your bank account and routing number ready if you plan to pay online through the CDTFA system.
Filing Frequency: The CDTFA assigns you a filing schedule; monthly, quarterly, or annually, based on your business activity. You can confirm your assigned frequency on your CDTFA registration documents or through your online account.
By preparing these details in advance, you’ll save time and reduce the risk of errors when filing through CDTFA Online Services.
Step-by-Step: How to File California Sales Tax Online
The online filing process is a logical progression of data entry and verification. While the exact screen layouts may evolve with the new eServices platform, the core workflow remains constant.Step 1. Prepare your Shopify Sales Tax Report. Gather all your sales data, including total, taxable, and exempt sales, from your ecommerce platforms and POS systems. Step 2. Go to theCDTFA Online Services website. Step 3.Log in using your username and password from the 1Password vault. Check your shared email or phone number and input the OTP when applicable. Step 4. Click the “Sales and Use Tax” hyperlink on the dashboard.Step 5. Click “File Return” next to the filing period you want to process.Step 6. Select the applicable option (such as a regular or amended return), then click Next.Step 7. Enter your Total Sales amount for the period, then click Next.Step 8. Enter any Additional Sales details if applicable, then click Next.Step 9. Select and click the applicable options (e.g., deductions, exemptions, or adjustments), then click Next.Step 10. Enter County Sales information based on your Shopify Sales Tax Report, then click Next.Step 11. Update your Tax Jurisdiction data as required, then click Next.Step 12. Select the applicable option for excess tax or additional adjustments, then click Next.Step 13. Enter any Excess Tax Collected during the period, then click Next.Step 14. Review all balances carefully, verify that they match your Shopify report, then click Next.Step 15. Fill out the Preparer Information (name, title, and contact details) and click Submit.Step 16. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option. Helpful tip: You can always click “Save and Submit Later” to avoid losing progress during interruptions such as internet issues or CDTFA system downtime.
Due Dates
FREQUENCY
REQUIREMENT
REPORTING PERIOD
DUE DATE
Monthly
Standard assignment for most sellers
Each month
Last day of the following month (e.g., Jan return due Feb 28/29).
Quarterly
Default for many small to mid-sized businesses
Q1: Jan–Mar
Q2: Apr–Jun
Q3: Jul–Sep
Q4: Oct–Dec
April 30, July 31, October 31, and January 31 of the following year.
Annual
Assigned by CDTFA based on very low sales volume
January – December
January 31
The California Department of Tax and Fee Administration (CDTFA) assigns your filing frequency when you register, based on your sales volume. Your return due datesdepend on that frequency:
Monthly Filers Returns are due on the last day of the month following the reporting month.Example: June’s return is due July 31.
Quarterly Filers (most common for small and mid-sized sellers)
Q1 (Jan–Mar): Due April 30
Q2 (Apr–Jun): Due July 31
Q3 (Jul–Sep): Due October 31
Q4 (Oct–Dec): Due January 31
Quarterly Prepay Filers (for higher-volume sellers assigned this schedule) Two prepayments are required each quarter, with the full quarterly return due at the end of the following month (on the same dates as the quarterly returns above).
Yearly Filers (Sales Tax Accounts) Returns covering Jan–Dec are due January 31 of the following year.
Fiscal Yearly Filers Returns covering June and July are due on July 31.
Important: If your due date falls on a weekend or a California state holiday, the deadline is extended to the next business day.
Timely Filing Discount
Some states give businesses a discount for collecting, filing, and remitting sales tax on time. Currently, California does not offer any timely filing discount.
Filing Amended Returns
If you discover an error on a previously filed return, file an amended return and pay any additional tax, penalty, or interest due. You can use the CDTFA Interest Rate Calculator to estimate interest. If your correction results in a refund, CDTFA automatically treats it as a claim for refund, no separate filing needed.
Go to your account and select the filing period to amend.
Under I Want To, choose File, Amend, or Print a Return/Report, then click Amend Return.
Update your figures, follow the prompts, and submit.
Note: CDTFA applies previous payments to your amended filing and automatically adjusts penalties or interest.
Refunds
If you overpaid California sales or use tax, you can request a refund online through CDTFA Online Services or by mailing Form CDTFA-101 with supporting documents to: Refunds Section, MIC:39, PO Box 942879, Sacramento, CA 94279-0039. Claims must be filed within three years of the return’s due date or six months from the date of overpayment, whichever is later. For refunds on vehicle use tax paid at the DMV, verify your tax rate on CDTFA’s website and submit Form CDTFA-101-DMV to the Consumer Use Tax Section, MIC:37, PO Box 942879, Sacramento, CA 94279-0037.
Other Filing Methods in California
If you’re having difficulty filing your California sales tax return online, you can try the following options:
File with TaxHero – Let expert accountants in TaxHero prepare your sales tax returns for you. We’ll take everything off your hands so that you can spend your time more efficiently managing your business.
By Mail: Complete a paper return (Form CDTFA-401-A) and mail it with a check or money order payable to “California Department of Tax and Fee Administration.”
In Person: Visit a local CDTFA office for filing and payment assistance.
Let TaxHero Manage Your California Sales Tax Returns
TaxHero doesn’t just handle your California sales tax return, we manage filings across every state where your business has nexus, ensuring each return is filed accurately and on time at the frequency required.This means you stay compliant nationwide without having to track multiple rules and deadlines yourself.Don’t wait until the next deadline, schedule your demo today!
Running a business can already be exhausting, but the legal obligation of getting your seller’s permit is another obstacle you must tackle. With different fees and requirements in each state, it’s easy to get lost in the process while trying to apply for one.
The price of a seller’s permit varies across states. Most states offer it for free, while others charge a registration fee between $5 to $100.
Now, as fickle as sales tax rules can be, these fees are also subject to change at any time. So before you jump into an application form or process, let us help you prepare by giving you the detailed breakdown of each state’s seller’s permit costs.
Did you fail to file and pay your sales tax on time? Are you curious about sales tax penalties?
You must be curious about what happens when a business doesn’t pay sales tax. But as an ecommerce business, it is your duty to understand the consequences of not following sales tax rules. Otherwise, the repercussions might get unnecessarily too taxing for you (no pun intended).
All actions (and, for that matter, inactions) have consequences, so always ensure you are up-to-date in filing, collecting, and remitting sales tax. Read this article to learn more about how you can avoid being non-compliant.
Filing your Alaska sales tax return is simple through the appropriate online portal. If you are a remote seller, you can file and pay directly through the Alaska Remote Seller Sales Tax Commission, as long as your business is registered to collect and remit sales tax.
Local businesses with a physical presence typically file directly with their specific city or borough tax office.
Though Alaska has no statewide sales tax, its cities or boroughs still levy local sales tax. This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Alaska’s unique decentralized sales tax rules.
Step 5. Fill in the Excel spreadsheet with sales for each district for the period.
Step 6. Upload the spreadsheet Excel file. Follow these instructions:
First, click on the link that says “Upload Excel Data Upload for Sales Tax”
Next, click “Choose File” and select the template you have filled out.
Step 7. Fill in all the required fields.
Step 8. After completing the fields, click the “Submit” button
Step 9. On the next page, it’s time to make a payment. Enter your bank details and then click “Pay”
Step 10. Keep a copy of the return and/or payment confirmation for your records. This serves as proof of successful submission.
Step 11. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful Tip: You can always click on “Save and Submit Later” to avoid losing your progress. This tip helps in case of internet issues, website downtime, or other disruptions that interrupt the filing process.
Understanding sales tax collection and remittance is crucial for businesses, given the requirements set by the US government. If you’re in the ecommerce business space, you might find it particularly challenging due to the unique rules and steps involved compared to traditional stores.
However, with this guide at your side, navigating the complexities of sales tax for your ecommerce operation becomes more precise and manageable. We break down the current sales tax requirements, ensuring your business stays protected from audits and streamlines operations.
When starting or expanding your business, you must obtain the necessary licenses and permits. They protect you from legal issues and allow you to perform your business activities faultlessly.
Among various licenses, a seller’s permit is essential for any business operating in the US (except for the states with no sales tax). Whether conducting a brick-and-mortar business or an ecommerce company, you’ll need a seller’s permit.
It can be complicated for new businesses to understand where to start. This article outlines a seller’s permit and the step-by-step process to obtain it.
In the vast landscape of ecommerce, retail is one of the most fundamental approaches to conducting business. Most retail businesses purchase wholesale inventory or materials and sell them to customers for profit. If you are a business that resells products, the supplier requires a resale certificate if you want to avoid paying sales tax on the products or items purchased.
Sales tax exemptions are tempting and complicated at the same time. Resale certificates help ensure that businesses comply with tax regulations. By understanding resale certificates and their requirements, businesses can avoid legal issues and penalties related to tax evasion.
In this guide, we have explained a state-by-state breakdown of rules for resale certificates to make it easy for you to navigate.
Step 5. Click “File Now” on the line that corresponds to the period for filing.
Step 6. Next, select the applicable options and then enter the total sales based on your Ecommerce Sales Tax Report.
Step 7. Now, enter the total local tax for each jurisdiction shown on your Ecommerce Sales Tax Report. Then click the Next button.
Step 8. Review the balances. Once done, tick the checkbox to Confirm.
Step 9. Now, enter your contact details and then click “Submit” to proceed.
Step 10. Click on “Make a Payment”
Step 11. Choose your preferred payment method.
Step 12. Next, click on “Pay” to proceed.
Step 13. Enter your bank information or choose your previously saved account to pay your balance.
Step 14. Schedule your preferred processing date. Next, enter the payment amount and then click “Submit“
Step 15. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful Tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Filing your New Jersey sales tax return is simple with the state’s online system. You can file and pay directly through the NJ Tax Portal, as long as your business is registered to collect and remit sales tax.
This guide will walk you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with New Jersey’s sales tax rules.
Step 4: On the dashboard, scroll to the “Tax Portal-Admin” section. Once you’re in the correct section, click “Online Transactions>File a Form.”
Step 5: Choose the appropriate return information from the drop-down menu and then click “Next”
Step 6: On the actual tax return form, enter the Gross Sales based on your ecommerce sales tax report. After that, the other necessary fields will automatically compute after clicking “Compute”. Once the automatic computation is done, click “Submit.”
Step 7: After submitting your return, you can now make a payment or choose to print a copy of your return. To prevent late payments, make a payment now.
Step 8: To complete your return, enter your payment details and then click on “Submit” to make the payment.
Step 9: After that, save a copy of your return and/or the payment confirmation. This serves as proof of successful submission.
Step 10: Additionally, you can save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common practice.
Helpful Tip: You can always click on “Save and Submit Later” to avoid losing your progress. This tip helps in case internet issues, website downtime, or other disruptions interrupt the filing process.
Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify).
Step 4. On the dashboard, scroll down to the “Sales Tax” section and then click “File Return”.
Step 5. Choose the location(s) where sales are made from the given location list based on your sales tax report by clicking the Location ID.
Step 6. Enter the gross sales and applicable deductions made on that location based on your Ecommerce Sales Tax Report. Click “OK” once done. Do the same for all the sites included in your report.
Step 7. At the end of the same page, click on “File remaining non-physical sites as $0 returns” if they do not show up in your report. After that, click “Next”.
Step 8. Review the summary “Total Tax for All Sites Filed,” which should match the collected tax on your Ecommerce Sales Tax report. After confirming all information is correct, then you can click “Next”.
Step 9. Choose if you would like to make a payment or not. Enter the payment account information that you will use and other details. Click Next.
Step 10. Mark the “I Agree” check box if you are ready to submit. Click Submit.
Step 11. Enter your password again to confirm submission. After that, click OK.
Step 12. Keep a copy of the return and/or payment confirmation for your records. This serves as proof of successful submission.
Step 13. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
NOTE: If you’re stuck or need more assistance, you can watch Colorado’s video tutorial.
If you run an Ecommerce or CPG business in North Carolina, securing a North Carolina Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with North Carolina sales tax laws.
Step 5. Select the appropriate options, then click Next to proceed.
Step 6. Enter the sales amount by selecting the county name, clicking the pencil icon, or using the + Add County Details link. Once all entries are updated, click Next.
Step 7. Review the balances displayed on the page, then click Next to continue.
Step 8. Review the balances displayed on the page, then click Next to continue.
Step 9. Choose your preferred payment option from the available methods.
Step 10. Enter your bank information, schedule the payment date, and click Submit once all details are complete.
Step 11. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Step 5. Select appropriate options from the drop-down menu, then click Next to continue.
Step 6. Enter the sales amount for each jurisdiction as required, then click Calculate.
Step 7. After reviewing the calculated figures, click Proceed to Summary.
Step 8. Review all balances and verify that the information is accurate, then click Next.
Step 9. Confirm that you’re ready to submit the return by clicking Yes Submit Return.
Step 10. Select Make a Payment Now to proceed with the payment process.
Step 11. Enter the amount to be paid and select the appropriate payment method, then click Next.
Step 12. Enter your bank account information as requested.
Step 13. Schedule your payment date, then click Submit.
Step 14. Select the Confirm button to finalize and complete the transaction.
Step 15. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful tip: If the filing process is interrupted by internet issues, website downtime, or other disruptions. You can always click on “Save and Submit Later” to avoid losing your progress.
Filing your Washington, D.C. sales tax return is simple with the city’s online system. You can file and pay directly through the MyTax.DC.gov portal, as long as your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Washington, D.C.’s sales tax rules.
Step 3. Enter your account credentials. Log in using your username and password.
Step 4. Check your shared email or phone number for the one-time password (OTP) and input it when prompted.
Step 5. On your dashboard, click on “View Returns.”
Step 6. Click “File Now” next to the filing period you wish to submit.
Step 7. Read the introduction and answer the return information questions. Click Next.
Step 8. Answer the return period information. Click Next.
Step 9. Enter your sales tax information, referencing your Ecommerce Sales Tax Report. Click Next.
Step 10. On the main tax return form, fill out the required fields using the data from your Ecommerce Sales Tax Report. Click Next.
Step 11. Review all data carefully and ensure it matches your Ecommerce Sales Tax Report. Click Next.
Step 12. Choose your preferred payment method, then click Next.
Step 13. Enter your payment account information and other details. Click Next.
Step 14. Re-enter your MyTax.DC.gov password to confirm and authorize submission, then click Submit.
Step 15. Save your return and payment confirmation as proof of successful submission.
Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful Tip: You can always click “Save Draft” to avoid losing progress during filing in case of interruptions like internet loss or system downtime.
Step 5. Click “File Return” next to the filing period you want to process.
Step 6. Select the applicable option (such as a regular or amended return), then click Next.
Step 7. Enter your Total Sales amount for the period, then click Next.
Step 8. Enter any Additional Sales details if applicable, then click Next.
Step 9. Select and click the applicable options (e.g., deductions, exemptions, or adjustments), then click Next.
Step 10. Enter County Sales information based on your Shopify Sales Tax Report, then click Next.
Step 11. Update your Tax Jurisdiction data as required, then click Next.
Step 12. Select the applicable option for excess tax or additional adjustments, then click Next.
Step 13. Enter any Excess Tax Collected during the period, then click Next.
Step 14. Review all balances carefully, verify that they match your Shopify report, then click Next.
Step 15. Fill out the Preparer Information (name, title, and contact details) and click Submit.
Step 16. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option.
Helpful tip: You can always click “Save and Submit Later” to avoid losing progress during interruptions such as internet issues or CDTFA system downtime.