If you do business in Texas and provide taxable products or services, you are required to file sales tax report and pay sales tax to Texas Comptroller. It is not easy to identify which sale is taxable and which sale is exempt, or which product/service is taxable or not. Therefore, it is better to consult a CPA firm in order to determine your sales tax liability.
The first step is to apply for the Sales Tax Permit. Once you receive the permit, you will have to file sales tax report periodically, even though you do not have any sales (in this case, you will file a “zero return”).
Depending on the amount of sales tax, you can file sales tax report yearly, quarterly, or monthly.
- If your total sales tax is less than $1,000 during a calendar year, you can contact the comptroller and ask for their authorization to file sales tax report yearly.
- If your total sales tax is less than $1,500 during a calendar quarter, you can file the sales tax report quarterly.
- If your total sales tax is $1,500 or more during a calendar quarter, you have to file sales tax report monthly.
The due date for filing and paying sales tax is the 20th of the following month. Late filing and late payment are subject to penalties and interest.
You can file the sales tax return yourself using online or paper filing, but this can be time-consuming and prone to errors. To save time and avoid errors, many businesses outsource the sales tax filing to a CPA firm like CMCD LLC. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and lack of knowledge about Texas sales tax.