Just because you don’t pay sales tax doesn’t mean that you aren’t responsible for paying it.

Let’s Define “Use Tax”

Use tax is when you don’t pay tax on goods, but the state you live in requires that you pay sales tax on all goods. It is required to pay sales tax on all goods if you live in a place where sales tax is mandatory. It is still required even if a vendor doesn’t charge it. State income tax return is the most efficient way to pay and report use tax.

California’s sales tax agency states, “if sales tax would apply when you buy physical merchandise in California, use tax applies when you make a similar purchase without tax from a business located outside the state.” Need more information? Check out this article for more about Use Tax in California.

Tracking Use Tax as a Business

First, if you live in a state that requires sales tax, be sure to save all receipts for which sales tax have been omitted.  Second, send that total to your tax preparer or provide details to your bookkeeper.  If you choose to try to track use tax on your own, QuickBooks Online has options for its platform for tracking use tax for your business. Feel free to check out this link for detailed instructions!

Contact Us Now!

Email us at hello@logistis.design if you use Logistis and don’t want to bother tracking on your own. Send us any receipts that you did not pay sales tax and we will deal with all the rest!

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