Most states require businesses to collect sales tax on nearly all transactions, which can be incredibly time-consuming and confusing. New entrepreneurs are often unsure of which products or services are subject to tax, how much to collect, and how often these business tax returns must be submitted. The guide below offers some valuable insight, helping you avoid potentially costly mistakes.

A Business Owner’s Guide to Sales Taxes

What Goods & Services Are Subject to Sales Tax?

Each state, county, and municipality has the authority to levy sales taxes on specific goods or services. For instance, Oklahoma requires a sales tax on all sales of tangible goods for personal use as well as most services, including printing, parking, and providing temporary lodging.

However, each state also has a specific set of exemptions that apply to certain products or businesses in certain sectors. Talking to an accountant with expertise in your local area is the best way to determine which sales are subject to taxation.

How Much Sales Tax to Collect

Along with state sales tax rates, the individual cities or counties in which you operate might have their own requirements.

In Oklahoma, the state sales tax is 4.5%, but your county may add one or two percent on top of that. Bear in mind that businesses with several locations may be subject to different tax amounts and have to submit business tax returns to several different agencies.

When to Submit Business Tax Returns

How often you must report sales data and submit returns often varies according to the size of your business and local laws.

For instance, businesses with relatively high volumes may have to submit business tax returns monthly, while smaller companies may be able to do so on a quarterly or annual basis.

Calculating your tax obligations can be confusing and frustrating, even for experienced business owners. For over 15 years, Joe Heard, CPA has provided detailed advice and a wide range of services—from day-to-day bookkeeping to business tax return preparation—to companies throughout the Checotah, OK, area. Visit their website for an overview of their tax services, or call (918) 473-1492 to make an appointment today.