Whether to charge sales tax is a common question we receive from small to medium size businesses. In the state of Texas, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Texas does not usually collect sales taxes on the vast majority of services performed. However, there are some services which are taxed. A common question is do I collect sales tax on shipping?
At McDonnell Richardson CPA, PC, we understand the complexity of sales tax laws and can answer your questions in this area. Texas sales tax audits cover a three-year period and can take years to complete. As a result of you audit, if the amount due is over $10k, then you will automatically get audited again. Paying he correct amount of your sales tax on time is extremely important. Accurate record keeping is the key. Depending on the tax, Texas taxpayers may be required to electronically report (file), monthly, quarterly or annually.
We can help you keep your sales tax obligations in order. After we meet and discuss your business and it is determined you should charge sales tax the first step is we will make sure your books are set up properly and file for a business Sales Tax Permit. After determining the frequency of your payments and the best way to keep up with the tax collections, we will set up the online payments to keep your business compliant.