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

Senate Finance Committee Examines Wayfair Decision

Senate Finance Committee Examines Wayfair Decision

The Wayfair decision Four years ago, the Supreme Court's decision in South Dakota vs. Wayfair changed everything about sales tax compliance for businesses with revenue from multiple states. Instead of being responsible only for transactions in states...

read more
Do We Still Care about Physical Nexus?

Do We Still Care about Physical Nexus?

The new nexus Before the Supreme Court's decision in South Dakota vs. Wayfair, remote sellers only had to collect sales tax when they had a physical presence in a jurisdiction. A store, a warehouse full of your products, affiliate sellers -- these...

read more
Sales Tax and Barter

Sales Tax and Barter

a The Barter Life It used to be that businesses only had to collect and file sales taxes if they had a physical presence in a state: an office, a store, a warehouse, or a factory, for example. A small business using e-commerce to sell in other states or...

read more