Sales Tax Compliance: How Do You Do It?

Though paying sales is very important, the truth is that only a few companies are aware of the right procedure. Whenever we meet with our clients, the first question they ask is “how to pay sales tax.”

After talking with numerous clients, we have come to know about one fact that, even after not being aware of the sales tax procedure, people want to be sales complaints.

So what does a sales complaint mean? Sales compliances are the way of keeping yourself updated with all the legal documentation for filing tax returns. Once a taxpayer is registered and pays the sales tax, they come into the sales tax-paying jurisdiction and are eligible for filing a sales tax return.

How To Do Sales Tax compliance?

Sales tax complaints can be viewed in these seven simple processes. Given below is the summary of those seven processes.

1. Gathering Data

In order to properly file a tax return, you need first to gather all the data on the company’s sales from different sources. If the company is large, ask the department manager to do that for you. Though do not mix the department. Keep the data segregated in terms of the department. This will help you in the future.

2. Evaluating Data

Gathering data from different sources is difficult; however, the bigger challenge is evaluating and reconciling them. All the data needs to be concealed according to the department and needs to be segregated in such a way that it can be easily shown on the tax filing pacers. If this seems like a lot of work and will be hard to manage, try using tools like Microsoft excel.

The reconciled data should consist of the following.

  • Collected sales tax.
  • Use tax accrued.
  • Tax Collected VS Tax Due.

3. Populating The Tax Return

Once all the required data are collected, you now need to put them on the tax forms. A review of the tax return will give you an idea of what is required and how that can be represented in the form.

Note that every state has their own tax returns. The preparation varies from state to state. There could be separate returns in some states, while in some states, there could be separate lines for the tax returns.

Other differences are given below.

  • Sales Vs. Seller Use.
  • Rental.
  • Lease.
  • Telecommunications.
  • Special taxes.

4. Filing Tax Return

Once you have collected all the data and the data are showcased in the form. The Last thing remaining is to file them on a timely basis. The jurisdiction will inform you about the filing procedures and due dates. Note that the due dates are for both the filing of the return and payment of the tax.

Sales tax is payable mostly in the month of taxable months. Dues date varies by the jurisdiction and mostly comes with a date at the ending of the month.

5. Confirm Payments

Once the tax return filing is confirmed, you need to make sure that the payment has been processed and has been received by the authorities. You should also check your bank conciliation to ensure that only the given amount is deducted.

6. Calendar Update

Calendar updates are the best way to keep track of your tax payments. You can create a tax calendar spreadsheet to store all the necessary information for future references. This calendar needs to have the following.

  • Due Dates.
  • Tax Dues.
  • Tax Deduction.
  • Tax returns.
  • Filing Methods.
  • Date filed.
  • Payment confirmations.

Once you have prepared the tax calendar, you need to ensure that you are keeping it up to date. This way, it will be easier for you to go back and see your past tax return and the processes you have used.

7. Repeat This next Year

Sales tax compliance is an ongoing process. Once you have completed the sixth process, the same thing continues for the next few years.


That’s it for Sales Compliance. We hope that we were able to give a summarised look at sales compliance. If this information fell short of your expectation, then let us know, we will be happy to give you full details of the sales compliances.


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