Sales Tax Services

Sales Tax Services

If you’re running a business in California, you probably need to make sure you’re collecting sales tax from your customers. While you won’t be required to pay it yourself, you are required to collect it and send it to the government for every product purchase.


Below, we’ll list a few of the most frequently asked questions we get regarding sales tax. We hope this helps you to understand whether or not you currently need sales tax help from a California accountant.

Who Collects Sales Tax?

The state of California collects sales tax, but once you’ve accounted for that rate, you also have to make sure you’re collecting any of the sales taxes required by your county or city. 

What Happens When a Business Doesn’t Collect Sales Tax?

It probably comes as no surprise that you don’t want to run into problems with the IRS. When the time comes, you’ll need to pay the uncollected sales tax due to the government. If you choose not to do so, you could end up faced with significant fines.

Does My Service Business Need to Pay Sales Tax?

Sales tax is only collected in the state of California for products. This means that service businesses and freelancers won’t be required to collect this tax in most instances. However, this does require some caution: if your service is used to create a product, you may need to collect sales tax. Ambiguous situations like these are why it’s imperative to speak with a tax professional.

Does Sales Tax Vary Based on Who Is Buying My Product

Yes, your customer(s) can have a major impact on what taxes you owe. Non-profits and certain resellers, for instance, may be exempt from sales tax. If you’re selling to someone from out-of-state, you will generally want to collect the sales tax from their state, as opposed to your own.

Because these things can get complicated – and because tax law is prone to frequent changes – it’s best to consult with a professional accountant to determine the tax liability for people who are purchasing from you.

Can I Count Sales Tax as Part of My Revenue?

No. Although you’re collecting the sales tax each time a customer makes a purchase, that doesn’t factor into the actual price of the product. You’re simply collecting that money and forwarding it to the government, which means you can’t count it as part of your profit or revenue.

Expert California Tax Preparation

If you’re looking for help with your California sales tax, you’ve come to the right place. Whether you neglected to collect sales tax and are trying to determine your liability to the IRS or you simply want to make sure your books are in order, Mauricio Midence is here for you.

We believe in using the most state-of-the-art accounting practices to minimize your taxes while making sure you’re paying the required amount. Tax law is notoriously byzantine, which is why we’re proud to help California residents determine their liability. If you have any questions about our services or you’re ready to give them a shot, don’t hesitate to reach out today!
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