Tuesday, March 16, 2010

More on Sales Tax

As a retailer you are responsible to know the Sales and Use Tax rules for your state.  For Illinois based companies this includes collecting the right amount of sales tax on taxable sales that you make, documenting tax-exempt sales that you make, paying Use Tax on items purchased and not resold, keeping good records of these transactions and sending sales tax owed with the proper forms to the Illinois Department of Revenue. 

The first step of the process is registering with the state as a retailer.  If you do business in Illinois, have a site or an office in the state or a warehouse from which goods are delivered, or if you sell items at craft shows, fairs or such in Illinois this requirement applies to you. 

As I mentioned yesterday, the rate that applies to retail sales will vary based on the location of the sale.  Form ST-1, your sales tax return, will have your rate preprinted on the form.   The sales tax return is not difficult to complete if you keep good records.

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