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Sales Tax

File the sales tax return for your company in the United States.

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Calculator to measure the income tax
What is the Sales Tax?
How often is it presented?
What percentage applies?

Every company needs to be up to date with its obligations in the United States. This is one of the most important processes to continue with its excellent performance and operation.

The sales tax is added to the price of taxed goods or services and the final consumer is charged. Businesses are responsible for collecting sales tax from consumers, thus making the payment to the state.

The periodicity of the presentation depends on the amount of taxes your company collects. It is imposed by the department of revenue of each state, and this may be:

  • Monthly.
  • Bi-monthly.
  • Quarterly.
  • Semestrally.
  • Annually.

Know here the percentage applied for each state.

Additionally, each state has a detailed list of goods or services that are exempt, excluded, or have preferential rates. The final percentage also may vary if the surtax applies.

What percentage applies?

Each state has a different collection system, so different percentages are presented for each one.

Open the next link to know every percentage for each state:

Know here the percentage applied for each state.

Keep in mind that each state has a detailed list of goods or services that are exempt, excluded, or have preferential rates.

Prodezk is your company's ally in the United States, our team of professionals will help you filing your company's taxes. Contact us.

What is the Principle of Territoriality?

This principle refers to the criterion of connection of a norm with a territory, which means that in the case of sales tax, this principle is relevant when defining whether the good or service is taxed or not.

The principle of territoriality is governed by different factors such as: where the service or product is being sold and where the warehouse with the merchandise is located.

For example:
A company incorporated in Florida that has a physical store or operates in the state of New York must tax its products and file a sales and use tax statement in front of the New York state secretary.

Information related to the sales tax:

It's important for every company officially formed in the United States to know and understand each one of the three concepts explained on this section.

Reseller's certificate

Many businesses  buy goods or services for the purpose of reselling them. These companies have a reseller certificate that allows them to acquire them free of sales tax. In some states this certificate has an expiration date, and there are other states where this certificate does not apply.

Principle of territoriality

It refers to connection of a norm with a territory. In the case of sales tax, this principle is relevant when defining whether the good or service is taxed or not. For example: A company incorporated in Florida that has a physical store or operates in the state of New York must file and pay the sales tax in New York.

Surtax

A surtax is an additional tax levied on top of an already existing business tax and can have a flat or progressive rate structure. For example: The sales surtax in Florida is based on the rate in the county where you deliver taxable goods or services, and a few counties do not impose the surtax.

STATE
REVENUE FROM SALES [USD]
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sales tax
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Tax calculator

We know that your company's accounting is a pillar for its proper functioning. This is why with the following tool you can obtain the tax rate to pay related to the state.

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Frequently Asked Questions

Should I collect sales tax when I sell to a reseller?

No, as long as your client has the reseller certificate, which you must request prior to executing the sale.

How do I know which items are taxed?

Each of the states handles different percentages and exceptions that can be consulted with one of our experts. Contact us.

I have a merchandise warehouse located in a different state in which I formed it. Do I have to file sales tax in both states?

Yes, since it complies with the principle of territoriality according to the location of the merchandise.

If my business is in one state and I had sales in a different state, do I have to file sales tax in both states?

This tax is governed by the principle of territoriality, meaning that if the company reaches a sales amount that meets the requirements of that state, it will require it to also declare and pay sales tax there.

Where do the collected resources go?

Sales tax is used for investment in state projects such as schools, highways, and fire departments. Many areas rely on sales tax to fund their budgets, so the state takes collecting it very seriously.

How do I know if my business has to pay sales tax?

The company must pay sales tax if:

  1. Sells ​​the product within the state.
  2. Sells ​​to the final consumer (as a retailer).
  3. If the product or service the company sells is taxed in the state.
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State Sales Tax Rates