Tax compliance in general means being aware of and observing the state and federal tax laws and regulations issued by any other relevant taxing authority.
Follow these five steps to make sure that you are adhering to sales tax laws:
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Determine where you have sales tax nexus and verify if your products or services are subject to sales tax.
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Calculate and collect tax appropriately in every state where you have nexus.
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Ensure your exemption certificates are valid, up-to-date, and readily accessible in case of an audit.
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Report and remit your taxable and exempt transactions on the proper return and to the proper taxing authority on time. You can verify if your sales tax returns are compliant with the help of this checklist.