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You bet!

Glad it was helpful!

Yes, until they review it. If the documents relate to errors, yes they keep the documents after the audit is processed.

Hi Brian. Large dollar purchases (both fixed assets and expenses) are important. In terms of expenses, restaurants and gas station receipts are important, but I would make sure to retain invoices relating to recurring charges, (for example, software apps, subscriptions, etc.). They always review credit card statements, so keep that in mind.

@@salestaxsisters Thank you, but now, I'm curious. Why would the State Tax man care about expenses? IRS would. Maybe your answer is for IRS? or Both? Would the State just need to see a sample Recurring Bill for a Software app or do I need to keep each one that I receive monthly? I do have $1000's of recurring expenses monthly and I've decided that keeping these SEEMED not important because I could produce a sample of a reccurring bill at will and by their nature, they are all duplicates unless there is a price hike.

@brianpellerin5243, whether or not an auditor reviews every invoice relating to recurring charges is on a case by case basis. I have had auditors review one invoice where tax was charged on a recurring basis and be satisfied that sales tax was always charged. Other auditors have requested scheduled transactions if they do not see that particular invoice. You have to figure out what works best for you in terms of record retention. But know that they can ask for a particular invoice and even if you can show it was a recurring charge and that tax was paid, if you get a stickler for an auditor, it may be an issue.

Hi E-S Professionals. They aren't the FBI. They do not hack into your email. They request invoices and if you don't provide hem, they will make assumptions, which are not typically helpful to businessowners.

Hi Hang out with Annie. I hate to say this, but it depends. If you are an tax exempt organization, I am inclined to say that you do not have to report use tax. However, each jurisdiction is different.

Hindsight is always 20/20. Upload your workpapers to the cloud!

Another sales tax sister here! Do your best to recreate the documentation. You must be able to show the tax authority how you created the reports so they can determine if money is owed. You can do it! We're here if you need an assist.

H Annie! So sorry for your friend! If hey are able to prove that those deposits are not related to sales, they may be able to decrease their exposure. Bank statements (which they can probably obtain for free (online banking!) may help with that. Good luck to them.

HI Gina, I am not sure what your exact question is. Are you trying to make tax exempt purchases or are you asking about whether you have to register to collect a jurisdiction's tax?

HI Jayws. Go to our website and book some time. The link is: www.thesalestaxsisters.com.

Professor my queries are different.if you don't mind can you give me your contact no.

Good day! You are welcome to visit us at www.thesalestaxsisters.com/services. The correct choice is "Taxability Research". We look to meeting you.

Professor I booked appointment 27-6-2024 date.time at 9.30pm

Professor your staff is not coming live section on the zoom meeting?.

Hi Aphilly, I can feel your frustration. I cannot tell you about Florida off the top of my head. But I am attaching a link that may be helpful. Here it is: floridarevenue.com/Forms_library/current/brochure/gt800010.pdf. You may want to reach out directly to the FL Department of Revenue for additional clarification. If you would like us to help, book an appointment at: www.thesalestaxsisters.com. Good luck.

Thank you Nina!. We are trying to catch up with you.

Sorry abut that . The difference between total sales and taxable sales are sales that are exempt from taxation. They could be 1) sales to out of state customers, 2) sales to tax exempt customers, 3) sales of goods that are not taxable in the jurisdiction where the sale was made. If your total sales does not equal taxable sals, you must be able to explain why and have all appropriate documentation on file to prove it. Hope that helped.

Hi @Aphillywithdahoodie. while I cannot discuss taxability in Florida, I will say that it looks like you have the right idea. Based on my experience, if you are using the brake cleaner and not charging your customer sales tax on it, you probably should be paying sales or use tax when you purchase it, unless there is some sort of applicable exemption. If the vendor does not charge sales tax correctly, you calculate it and report it as a taxable purchase on your sales and use tax return. As always, this is general advice. Taxability rules vary by jurisdiction. You can always confirm this with your Florida Department of Revenue. Good luck and thanks for reaching out.

@@salestaxsisters Thanks. Can you answer this for me I know you said every state is different and you are in Texas but you may help give me a better idea as I can’t find this clear anywhere online. I know an exempt sale is if the customer is tax exempt you would put that in line 2a. But as an auto repair shop if I do a job that is only diagnosis and no parts were incorporated into the repair. Wouldn’t that be an exempt sale? As I am only offering a service with no parts/products used in the repair. Which would also be reported on line 2a?

Hi, Marto. Yes, in Texas, churches can be classified as tax exempt entities. They should issue a properly completed exemption certificate to you so that you do not charge them sales tax. I also recommend that you confirm they are tax exempt by going on the Texas Comptroller's website and using the Searchable Taxpayer Database to confirm they are tax exempt. Hope that helped.

Hi Andre. I am not sure which jurisdiction you are in but generally, taxable purchases do not include items that are resold. As a caterer, you are reselling the food, so it is unlikely they woudl be taxable purchases.

Hi Mr.Animeseeker. The taxability of the items that you purchase depends on the jurisdiction where you conduct business. Generally, hand tools are taxable, but it is important to know what is applicable in the jurisdiction where you do business. Equipment use to perform services can also be exempt, but sometimes they are taxable. There are general exemption for manufacturing equipment. But like always, it depends. Hope that helped.

Thanks for watching! And haven't we all been dazzled by the coupon.

In Texas, total sales are Texas sales. Which are sales to Texas customers and sales from your Texas location. Review the instructions on the return. They should provide additional clarification. Hope that helped.

Hi Maria. It sounds like you are reselling the shirts and transfers. You probably should not be paying sales tax on the tshirts or the transfers. They will also not be included in the taxable purchases calculation. Please keep in mind that sales and use tax laws vary from jurisdiction to jurisdiction. Hope that helped.

Following because this is the same position I'm in.

Hi , based on the scenario you described, this doesn't seem like a taxable transaction. If this isn't a taxable transaction, it doesn't qualify as a taxable purchase. But, keep in mind that taxability varies from jurisdiction to jurisdiction. You need to know the applicable rules where you conduct business.

So happy it was helpful for you.

Welcome!

Thank you for the support.

Hi Armando. Congratulations on your new business! Whether the items are taxable depends on what you are selling. Normally goods are taxable, but there are exceptions to that general rule. You also have to understand when customers can purchase otherwise taxable items tax free. Otherwise taxable items can be purchased tax free if the customer provides the appropriate documentation (i.e., exemption, resale, direct payment exemption certificate, etc.). Hope that helped.

This is soooo good to hear. Happy New Year!

Hi Silvaline! If you are selling items directly where if they purchased them via your website, sales tax would have been charged, you should also charge sales tax on those direct sales. You do not have to avoid the direct sales, just know that you must collect the applicable sales tax and remit it to the taxing authority via your sales and use tax return. Hope that helped.

@salestaxsisters2515 Okay, thanks much.

Glad it was helpful!

Glad it helped!

Thanks, Nina. Loving our videos and Lucy taking on that dinosaur.

Hi Madison, It depends. If your customers are not tax exempt, you don't have out of states sales or if your customers are not reselling the candles, then yes. Theoretically, your total sales and taxable sales should be equal. I will also suggest you think about the taxability of shipping and handling charges and whether you qualify for any manufacturing exemptions. Hope that helped.

Hi Gilbert, Whether you pay tax on the auto parts depends on how you invoice your customer. If the invoice is separated, you can purchase some parts tax free, but you would have to charge sales tax. If you invoice a lump-sum charge, then you should pay tax when you make the initial purchase of parts. I have attached a link to a Comptroller publication that should help you. You should use that as a guide. If you have any additional questions, let us know. Repair/Remodeling of Motor Vehicles in Texas publication link: comptroller.texas.gov/taxes/publications/94-113s.php

Thank you so much for getting back to me. @@salestaxsisters

It depends. Are you reselling the items (then probably not)? Are you using them (maybe, if they are taxable goods)? Are they taxable in the jurisdiction where you conduct business? All of those things will affect whether you should accrue use tax on them.

Glad it was helpful!

Hi, Shuabib. Congratulations on the success of your business. This is an interesting question. The first thing you should do is check your agreement with the marketplace seller and determine what your responsibilities are in terms of sales tax and sales tax collections. Total sales on the Texas return are all sales made from your Texas outlet and all sales tax Texas customers. If the sales from the marketplace seller are included in the total sales calculation, make sure that it is clear that those sales came form Amazon or Etsy, etc. In terms of taxable sales, the comptroller is interested in taxable sales to Texas customers, not sales to non-Texas customers. It is also important here that you are clear about whether the marketplace seller is collecting sales tax on those sales and how it is being remitted to the taxing authority.

@@salestaxsisters Thanks for your reply, i am so obliged, the Marketplace is working as the facilitator, and deducting and depositing the tax on my behalf. It is as per the agreed terms and according to the law of each state. My concern was that out of those sales the marketplace was facilitating, few can be initiated from Texas and few can be initiated outside of Texas but bound to deliver inside Texas as explained in my example earlier. On both sales, proper tax has been collected and deposited by the Marketplace Facilitator as shown in my example. But me being the Company whose Place of Business is Texas, what should I Report in my Monthly ONLINE SALES AND TAX RETURN. Considering the FACT that there is NO PHYSICAL Brick and Mortar Store of my Company in Texas, only present through an Online Store on Market Place. Further, I would like to discuss assigning the task to you for the annual IRS filings of my business, therefore, please advise me, on how can I contact you?

Yes. It is best to just act right.

Hi Ashlee. First, don't be so hard on yourself. No one is perfect. When you know better, you do better. Whether you want to amend your returns is a business decision. Look at the magnitude of the error in terms of dollars. Did you not charge the correct sales tax, or is it a case of you not reporting one of the categories incorrectly? If it is a case of you not reporting your sales numbers correctly, but you remitted the appropriate tax, that isn't a major issue. Even if you didn't charge the appropriate tax, what are the dollar amounts involved? The taxing authority is probably not going to audit you over a couple hundred dollars. You are right that amended returns are a red flag to the taxing authority. Weigh the pros and cons. If you need more advice, let us know. And good luck.

It can be confusing. we ope the videos are helpful. We also have a on demand class about filing your Texas sales and use tax return and are planning on launching an interactive course about it soon. If you are interested in more information about the on demand course go to: thesalestaxsisters.thinkific.com/courses/understanding-your-texas-sales-use-tax-return

Hi sjodhan. Congratulations on your international sale. You are correct that you do not charge sales tax on the international sale. I am not familiar with the sales tax laws applicable in Florida In terms of the documentation that is needed to prove the item was exported off the top of my head. Usually shipping documents (including documents from the freight forwarder) and invoices are sufficient, but the requirements in Florida may be different that what is required in Texas. You can call the Florida Department of Revenue, do a little research (here is a link: floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx) or book a little time with us (link: thesalestaxsisters.com/book-a-session-with-stephanie/). Hope that helped.

Glad it was helpful, Scott!

Hi atrans6476. I can only give you general information since I do not know your business. I do not see how you may qualify to be a tax exempt organization. However, there may be exemptions available if you are leasing the trucks, instead of providing a service. In terms of auto repairs, in Texas, whether it is taxed can depend on the format of the invoice.