Navigating Sales Tax During the Holiday Season
The holiday season is here, and with it comes the excitement of finding the perfect gifts for loved ones. But for business owners, it also means staying on top of sales tax obligations during the busiest time of the year.
Holiday shopping often means increased sales, which can impact your tax liability. If your business sells online or across state lines, understanding the nuances of state-specific sales tax rules is essential.
Key Tips for Managing Sales Tax This Christmas
Monitor Your Nexus Thresholds
Increased sales volume can trigger economic nexus thresholds in new states. Review where you’re selling and ensure you’re registered in all applicable jurisdictions.
Keep Records Updated
Accurate records are crucial for reporting. Ensure your point-of-sale system properly tracking sales tax for each location.
Holiday Promotions and Exemptions
Offering holiday discounts? Calculate sales tax on the post-discount price. Additionally, some states may offer exemptions on certain items during the holidays.
Plan for Filing Deadlines
With many states requiring monthly or quarterly filings, set aside time in January to file your December sales taxes.
Stay compliant with sales tax rules this holiday season, which can save your business from costly penalties and ensure you’re starting the new year on the right foot. Need more tips? We are here to help with expert sales tax professional personalized guidance.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.