0
What else can I help you with?
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.
When a business sells an item and collects a state sales tax on it a current liability arises?
true.
What is a sales tax payable account?
A sales tax payable account is a liability account on a business's balance sheet that represents the amount of sales tax collected from customers but not yet remitted to the tax authority. When a business makes a sale, it collects sales tax as part of the transaction and records it in this account until it is time to pay the tax to the government. This account helps businesses track their obligations and ensures compliance with tax regulations. It is crucial for accurate financial reporting and maintaining cash flow.
What tax is paid by businesses only?
sales tax sales tax!
How do you Gross up sales tax?
Sales Tax / Sales Tax Rate = Gross Sale
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 collect tax?
Sales tax is collected by the seller and then passed on to the State.
What is the state sales tax in Oregon?
There is no sales tax in the state of Oregon.
Does QVC pay state sales tax it collects to all the states?
Legally, if QVC collects the state sales tax, they are required to pay it to the state. Each individual state has its own laws regarding the collection and payment of the taxes.
When a business sells an item and collects a state sales tax on it a current liability arises?
true.
Does Nevada have sales tax on used cars?
If you buy a used car from a private party, there is no sales tax charged. If you buy from a dealer you will pay sales tax based on the county of registration. You pay sales tax on cars when you register the vehicle. The dealer collects it when you buy through them, otherwise the MVD does.
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.
Does dealer get a percent of sales tax or state tax?
I am not aware of every states sales tax regulations, but here in Georgia, the store who collects the sales tax receives a small fee of 3% of the tax if they filed and paid all taxes due to the state department of revenue on time. If it was not paid and filed on time they forfeit this "vendor's compensation".
Why do you pay sales tax on cars in Massachusetts?
Because it is the law. The state of Mass collects sales taxes on every car sold as a way of raising revenue for the operation of the state. Almost every state in the union has a sales tax on the sale of a car.
Who pays the sales tax when buying a used car from a dealer in Arizona?
In Arizona, the buyer pays the sales tax when purchasing a used car from a dealer. The dealer collects the tax at the time of sale and then remits it to the state. The sales tax rate is based on the total purchase price of the vehicle, and additional local taxes may apply depending on the location of the sale.
What is a sales tax payable account?
A sales tax payable account is a liability account on a business's balance sheet that represents the amount of sales tax collected from customers but not yet remitted to the tax authority. When a business makes a sale, it collects sales tax as part of the transaction and records it in this account until it is time to pay the tax to the government. This account helps businesses track their obligations and ensures compliance with tax regulations. It is crucial for accurate financial reporting and maintaining cash flow.
If the product was mailed to Fla by a PA retailer who collects sales tax must PA sales tax be charged?
If the product is mailed directly to FL by the retailer, the product is not taxable in PA due to interstate commerce laws. The product is taxable in FL. Either the retailer will charge sales tax if they have nexus in FL or the consumer would be responsible to self assess use tax in FL.
