As your business becomes more mobile, you will begin to rely more on Internet sales. It is important to note that sales tax does apply to many Internet sales, requiring the need for Internet sales tax compution methods. However, in some cases, businesses are not required to collect these taxes. Here are two tips:
Physical Presence. If your business has a physical building that goods or services are sold from, then you will pay Internet sales taxes. If your business is entirely Internet-based, you will not be required to pay sales taxes.
State Exemptions. If you conduct business in a state that does not require sales tax, your Internet sales will not include tax. There are certain exemptions for other states as well, such as for food.
At Roberts Tax Advisory, we know how difficult it can be to keep track of what tax needs to be paid and to whom. We also know how difficult it can be to keep track of how much is owed from each purchase.
Our experts can help you determine if you owe taxes, then help you devise a plan to pay the owed taxes. An accounting system can also be developed to help you have thorough records of paid and unpaid taxes so that when the time comes, you will be better equipped to properly handle the IRS.
Running your business can be hard work. Dealing with Internet sales tax computation does not have to be. Contact us today to see how we can help you.