Starting a business in Hawaii is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a General Excise Tax (GET) License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Hawaii.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Hawaii?
A business must register for a sales tax permit in Hawaii if:
How to Register for a Seller’s Permit in Hawaii?
When applying for a General Excise Tax License in Hawaii, you can use the online application process on the Hawaii Department of Taxation website to complete your sales tax registration.
1. Where to Apply for a Seller’s Permit in Hawaii?
The first step to register for a sales tax permit online is to go to Hawaii Tax Online, click “Register New Business License” found in the Registration section, and then click “BB-1 Basic Business Application.”
You will then follow through the prompts that walk you through your registration process and provide the necessary information. When you reach the account selection section, select “Yes” beside “General Excise / Use Tax.”
Once you reach the “fees” section, you will be asked to input your chosen payment method. Ensure you have your details ready.
During your registration process, you will create an online user profile with the Hawaii state website. Once you’re done, you will have the opportunity to review your entries. Once everything is complete, click “Submit.”
2. What Information Do You Need to Get a Seller’s Permit in Hawaii?
To successfully acquire a seller’s permit in Hawaii, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in Hawaii:
- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the State of Hawaii (Nexus Start Date), Accounting Method (Cash vs. Accrual)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Hawaii?
Registering for a sales tax permit in Hawaii costs $20. The state charges a non-refundable registration fee.
Hawaii sales tax permit does not need to be renewed and remain valid for as long as the business exists without any changes in ownership or structure.
However, tobacco and liquor vendors are required to renew their seller permits annually.
4. What are Other Ways to Register for a Seller’s Permit in Hawaii?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You must complete Form BB-1, attach the necessary documents, and mail the document to the P.O. Box address provided on the form.
- In Person: Bring two completed copies of Form BB-1 to any Hawaii Department of Taxation (DOTAX) District Office. Make sure to prepare $20 for the registration fee. You can receive your GET License immediately.
What’s Next?
Once you’ve sent out your permit application, you will see a confirmation page stating that your request for a General Excise Tax License has been submitted. You will also receive a confirmation email informing you that your online user profile has been successfully created.
If you applied online through Hawaii Tax Online, your General Excise Tax License should arrive at the mailing address you provided during your registration process within five to seven business days.
In case you applied for a license via mail, you may receive your General Excise Tax License after four to six weeks.
Obtaining a General Excise Tax License requires you to collect sales tax for eligible sales in Hawaii.
Remember that if your business has a physical location in Hawaii, the General Excise Tax License must be visibly displayed at all times at the place for which the certificate is issued.
If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.
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