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Need the answer why is sales tax a liability to a business?
When a business collects Sales Tax, it owes it to the Sales tax collecting authority. Sales tax that has been collected but not paid to the Sales Tax collecting authority should be carried on the books as a liability.
Who does a business owe its sales tax to?
The State that they do business in
Is Nebraska sales tax deductible for small business owners?
If you charge tax on the products/services you sell, the customer pays the sales tax and the business passes the tax onto the state/municipality. If the business buys supplies for use in the business (and not for resale) you will pay sales tax and the entire cost of the supplies will be deductible to the business. If you buy the same supplies from out of state and do not pay Nebraska sales tax, you should pay Nebraska use tax and that amount is also deductible to the business. If the business buys supplies that go into making a product for resale, you should not pay sales tax on the purchase of those supplies.
Do you have to charge sales tax on the merchandise you sell in a home business?
Whether you need to collect sales tax depends on where you and your customer is located. If your customers are in the same state as the physical location of your business, they owe sales tax on items. If you are shipping merchandise to a state where your business does not have a location, you will not need to collect sales tax.
What types are items are tax exempt for a business?
Items that a business buys with the intention of reselling them are exempt from sales taxes. However, the business has to charge sales tax when it does resell that item.
How often is sales tax paid?
Periodically in a business depending on the business you are in.
How much does Florida charge for their business sales tax?
Business sales tax is a standard rate around the state of Florida. The current ongoing rate is set at 6%
When should a business send the collected sales tax to the government?
A business should send the collected sales tax to the government according to the schedule set by the tax authorities, typically on a monthly or quarterly basis.
Do you have to pay sales tax if you buy a used car from a non-car selling business in Washington?
You will pay the sales tax when you register the car. If the business collects it, they have to give you a receipt for it.
Do you have to pay sales tax on the pruchase of fire extinguishers for use in a business in Texas?
SALES TAX IN NYC- Are fire extinquishers taxable
Do you pay sales tax at the car dealership when you buy a used car or do you have to go to the dmv?
As with any sales business, the car dealer must collect the sales tax.
Is the rate of sales tax the same in every state?
The sales tax rate are not the same in every state. It varies on what the state and local governments charge. If a business has a sales tax license, then they are allowed to charge it.
