Filing your Kentucky sales tax return is simple with the state’s online system. You can file and pay directly through the Kentucky Department of Revenue (DOR), 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 Kentucky’s sales tax rules.
What You Need Before Filing
Kentucky Sales and Use Tax License / Central Registration Number (CRN) – This eight-digit number is issued when your business registers with the Comptroller of Kentucky and is required for filing your return.- Kentucky Taxpayer Account Number (Sales Tax Permit): Issued when you register with the Kentucky DOR. This number must be included when filing your returns.
- Kentucky Online Filing Credentials: Username (email address) and password for the DOR’s online filing system. If you don’t have one, you must set it up when registering for your permit.
- Total Sales: All gross receipts during the filing period, including both taxable and exempt sales.
- Taxable Sales: The portion of your sales that is subject to Kentucky’s 6% sales and use tax.
- Taxable Purchases: Any purchases made without sales tax where you owe use tax (e.g., items bought out of state and used in Kentucky).
- Deductions: Information for exemptions or deductions that reduce your taxable base. These are reported using the Deductions Worksheet.
- Bank Account and Routing Number: Required for making electronic payments directly to the state.
- Filing Frequency Schedule: Assigned by the Kentucky DOR based on your sales volume. Your sales tax permit will indicate whether you must file monthly, quarterly, semi-annually, or annually.
Step-by-Step: How to File Kentucky 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 your total receipts, taxable sales, and deductions for the filing period to ensure all data matches what will be entered in the state system. Step 2. Go to the Kentucky Department of Revenue portal. Step 3. Log in using your username and password from the 1Password vault. Check your shared email or phone number and input the OTP (one-time password) if prompted. Step 4. Once logged in, click “MyTaxes.” (Note: A new window will open to the Kentucky One Stop Business Portal.)
Step 5. Click and select Transactions > File a Form.
Step 6. Select the proper options from the dropdown menu, then click Next.
Step 7. Enter your total receipts for the period on Line #1, then click Calculate and Submit.
Step 8. Click “Make a Payment Now.”
Step 9. Input the amount and select your preferred payment method, then click Next.
Step 10. Choose the bank account you’ll use for payment and click Submit.
Step 11. Review the confirmation page and ensure your return and payment were successfully processed. 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 your progress during interruptions like internet loss or website downtime.
Due Dates
Kentucky requires sales tax returns and payments to be filed together by the due date, ensuring that both the reporting and payment processes are completed on time. The standard deadline is the 20th of the month following the reporting period, but larger businesses with significant sales tax liability may have earlier deadlines. If a due date falls on a weekend or state holiday, the deadline is automatically moved to the next business day. Businesses need to track their assigned filing frequency, as it directly determines how often returns and payments must be submitted. The Kentucky Department of Revenue (DOR) assigns this frequency based on the size and sales volume of your business. Here’s a breakdown of how filing frequencies work in Kentucky:- Annually: Very small businesses with minimal tax liability may be allowed to file just once per year. These businesses report sales activity for the entire calendar year, with the return due by January 20 of the following year.
- Quarterly: Small- to medium-sized businesses may be assigned a quarterly filing requirement. Returns cover three months at a time: January through March, April through June, July through September, and October through December. Each quarterly return is due on the 20th of the month after the quarter ends (April 20, July 20, October 20, and January 20).
- Semi-Annual: Some businesses are assigned a semi-annual filing frequency. In this case, two returns are filed per year: one for January through June (due July 20) and another for July through December (due January 20 of the following year).
- Monthly: Standard businesses with steady or moderate tax liability usually file monthly returns. Each monthly return covers the previous month’s sales activity and is due by the 20th of the following month.
- Accelerated Monthly: Larger businesses with a monthly sales tax liability of $10,000 or more are required to file on an accelerated basis. These businesses must submit their return and payment by the 25th of the same month in which the sales occurred, rather than waiting until the following month.
| FREQUENCY | REQUIREMENT | REPORTING PERIOD | DUE DATE |
| Monthly | Standard businesses with regular liability | Current tax period | 20th of the following month |
| Accelerated Monthly | Businesses with a monthly sales tax liability of $10,000 or more | Current tax period | 25th of the same month |
| Quarterly | Small-to-medium businesses (as assigned by DOR) |
|
Apr 20, Jul 20, Oct 20, Jan 20 |
| Annual | Very small sellers with minimal liability | Jan 1 – Dec 31 | Jan 20 of following year |
| Semi-Annual | As assigned by DOR |
|
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Timely Filing Discount
If you discover an error after submitting your Kentucky sales tax return, you must file an amended return. Amended returns can be submitted through the Kentucky DOR’s online filing system (TPS/E-File). You’ll need to select the specific filing period, make the necessary corrections, and resubmit the form. Keep in mind:- Penalties and interest may still apply if the correction increases your tax liability.
- If the correction results in a refund or credit, you may need to submit supporting documentation.
Filing Amended Returns
If you make an error on a previously filed Kentucky sales tax return, you are required to file an amended return. Unlike regular returns, which can be filed online, amended Kentucky sales tax returns must be paper-filed. Here’s what to know:- How to prepare the amendment: You’ll need to generate the amended return through the Kentucky DOR’s system or using tax software (such as TPS/E-File or an approved provider). Select the filing period, make the necessary corrections, and print the updated form.
- Mailing the amended return: Sign and mail the amended return along with any required supporting documentation (such as invoices, W-2s, or 1099s) to the address printed on the form. The mailing address may differ depending on whether you’re due a refund or submitting an additional payment.
- Refunds or credits: If your amendment reduces your liability and creates a refund, you’ll need to report any refund amount from your original return on the amended form. The DOR may request supporting documents.
- Additional tax owed: If your amendment increases your liability, report any previous payments on the amended return to avoid double-counting. Penalties and interest may still apply if the correction increases your balance due.
- Explanation required: The Kentucky DOR requires an explanation of the changes when submitting an amended return. Be clear and specific about why the correction was needed.
Refunds
Kentucky allows refunds for overpayments of sales or use tax. If you’ve overpaid, you can request a refund by filing a Sales and Use Tax Refund Application (Form 51A209). This form must be completed in full and mailed or submitted electronically to the Kentucky Department of Revenue. Key points to know about refund claims:- Statute of limitations: Refund claims must be filed within four years from the date the tax was paid to the Kentucky State Treasurer. After that, claims will not be considered.
- Supporting documentation: You must provide proof of the overpayment, such as invoices, receipts, resale certificates, or exemption certificates. If the refund relates to sales tax collected from customers, you must also show that the tax has been refunded to those customers before DOR will issue a repayment.
- Who can file: Only the business that remitted the tax directly to the state may file Form 51A209. If the vendor’s compensation was claimed on the original payment, that amount will be deducted from the refund.
- Consumer-specific refunds: In cases where tax was erroneously charged on exempt transactions, such as purchases of bullion or collectible currency made after August 1, 2024, the retailer must file a refund request with the Department of Revenue. Consumers should first request the refund directly from the retailer, who will then seek reimbursement from the state.
Filing Zero Returns in Kentucky
Kentucky requires a return for every assigned filing period, even if you had no taxable sales and owe no tax. In that case, file a zero return to keep your account in good standing and avoid unnecessary notices or penalties.Other Filing Methods in Kentucky
If you’re unable to file online through the Kentucky DOR Tax Payment Solution (TPS), other options are available:- Paper filing: Businesses may request original scannable forms (such as 51A102, 51A102E, 51A103, 51A103E, or 51A113) by calling the DOR at (502) 564-5170 or visiting a field office. Copies or faxes are not accepted.
- By mail: Completed forms with payment (check or money order payable to “KY State Treasurer”) can be sent to: Kentucky Department of Revenue, Frankfort, KY 40620-0021.
- 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. [br_spacer]