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Exploring what's new, relevant and upcoming in the ever-changing world of sales tax.

Do You Need to Pay Gross Receipts Tax?

 Jul 15, 2015 Sales Tax DataLINK

Although we might think of gross receipts tax as the same as sales tax, there are a number of differences your business needs to keep in mind. Sales tax is not the same as a gross receipts tax because of how and where the money to pay the tax comes from. Gross receipts tax is based on total revenue and directly affects the profits of a business. Gross receipts tax is paid by the business rather than by its customers and typically does not exempt many of the products and services that a sales tax law does. Additionally, rates for taxes on gross receipts tend to be lower than sales tax rates although they often are applicable to more transactions. Read More