Managing sales tax compliance involves several steps:
Registration: Businesses must register for sales tax permits in all states where they have nexus. Collection: Properly collect sales tax on all taxable transactions. Filing: File sales tax returns on time, usually monthly, quarterly, or annually, depending on the state requirements. Record-Keeping: Maintain accurate records of all sales and sales tax collected, which is essential for audits and compliance. Software Solutions: Utilize sales tax automation software to streamline the process and reduce errors.