Sales and Use Tax Forms: What You Need to Know

Some businesses have more complex tax situations than others. For instance, if you have a retail company operating in multiple states, you’re required to file sales and use tax forms in each state where you operate.

Tracking down, filling out, and sending each individual form gets frustrating and time-consuming. But when you use Taxscribe Pro’s new Sales and Use Tax Form filling, the process becomes beautifully simple.

Understanding Sales and Use Tax Forms

Before digging into the particulars of sales tax forms and use tax forms in certain states, you should understand the distinction between sales tax and use tax. Here’s that difference in a nutshell:

• Sales Tax: Tax paid when you purchase items or services within your state. 
• Use Tax: Tax paid when you purchase something outside your state but use it within the state

Fortunately, when it comes to sales and use tax, you pay one or the other — not both. The two taxes are applied in different situations. Sellers collect sales tax at the time of sale, and they later remit that tax to the government. If tax isn’t collected at the point of purchase, the buyer owes “use tax” in their state of residence.

Each state has slightly different guidelines for filing frequency. However, most businesses file monthly or quarterly.

State Breakdown: State-Specific Sales and Use Tax Information

Each state for which you fill out a sales tax form will likely have slightly different requirements for sales and use taxes. Here’s a quick look North Carolina specifics:

North Carolina

• North Carolina has a state sales tax rate that may be slightly higher in certain localities. The base level for state sales/use tax is 4.75%, but it can rise to as high as 7.5% in some areas. 
• Generally, prescription drugs and clothes are exempt. Groceries are exempt from the state tax, but they are taxed at a lower local rate.
• Use tax is imposed on purchases made outside of North Carolina that are brought into the state for storage, use, or consumption.

The Importance of Accurate Sales and Use Tax Forms Filing

Accurate sales and use tax filing is extremely important, especially if your business is relatively small. You might face legal and financial penalties if you fail to file properly. Additionally, failing to file your sales and use taxes at all can damage your reputation with regulatory bodies and customers — and that’s never good for business.

Why Choose Taxscribe Pro for Sales and Use Tax Form Filing?

At Taxscribe Pro, we’re always striving to make the tax filing process faster, easier, and more straightforward. That’s why we’ve launched our new Sales and Use Tax form filing feature. Check out some of the benefits:

• Centralized, electronic forms bring business tax filing into the 21st century
• Taxscribe Pro lets you file both business personal property (BPP) and sales/use tax forms at once 
• Our user-friendly interface makes filing easy, even if you’re filing business taxes for the first time

When you choose us, we’ll handle the heavy lifting. We’ll run calculations, generate and mail forms, and keep you updated throughout the process. This means you can sit back and enjoy your most relaxed tax season yet.

Ready to Spend 80% Less Time on Your Taxes?

Filing your sales and use tax forms can be tedious. Furthermore, if you file them incorrectly the first time around, the process becomes infinitely more difficult. This is where Taxscribe can help.

When you use Taxscribe, you can enjoy faster, more accurate filing while ensuring compliance. Are you ready to learn more about Taxscribe Pro? Sign up today and get four free credits!