Sales Tax Holidays

Memorial Day weekend is a sales tax holiday in some jurisdictions — and with that comes a lot of headaches about how to manage those holidays. Filing periods that involve sales tax holidays can be complicated because you’re still reporting taxes for most days in the sales period and have just a few days without sales tax collections. Some sales tax holidays apply to certain products, like the one this weekend in Texas on energy efficient appliances. Even threshold amounts can be tricky to deal with. When you’ve got a $25 dollar item and only $20 is allowed for the sales tax holiday, can your sales tax filing software understand how to apply the sales tax to the $5 overage? Most of the calculations for sales tax holidays are done on the invoicing side when the transaction occurs but filing can be pretty complicated for sales tax holidays.

If your sales tax filing software doesn’t take into account these special features, it might become difficult to file successfully if your software has a blocking system that doesn’t let you file until the errors are corrected. If the sales tax filing software isn’t smart enough to adjust for these legal sales tax changes, it will think these are errors and not complete the filing process. You’d have to result to the old fashioned methods of work-arounds to accomplish sales tax holidays. Instead of resorting to frustrating methods, when you’re selecting sales tax filing software ask questions about how it handles things like sales tax holiday threshold amounts.

Software should easily work with sales tax holidays and still can verify all of your sales tax data information from your invoicing system accurately to ensure you’re filing correctly. We hope you have a wonderful Memorial Day weekend and enjoy some time with friends and family away from your desk and all the issues surrounding sales tax!

Latest Articles

Sales Tax Software

Sales Tax Software

Sales tax calculations and filing can be done by hand. When you make a sale, you figure out whether the goods and services are taxable and whether you have nexus in the buyer's tax jurisdiction. More on that later. Once you've determined that you need...

read more
Customer Service and Your Sales Tax Solution

Customer Service and Your Sales Tax Solution

Sales tax is complicated. We've just gone through the annual flurry of back to school tax holidays, for example. If you're a remote seller of clothing, you probably sell mostly through retail. But you might have some direct to consumer sales. In some...

read more
Sales Tax Holidays for E-commerce

Sales Tax Holidays for E-commerce

A lot of our clients are manufacturers, contractors, or in some other industry that doesn't usually have to think much about sales tax. Retailers know they have to collect sales tax, and usually plan for it. We often hear from people who had no idea...

read more