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How to be sales tax compliant

Follow these steps to make sure you are adhering to sales tax laws.

Tax compliance in general means being aware of and observing the state and federal tax laws and regulations issued by any other relevant taxing authority.
  1. Determine where you have sales tax nexus and verify if your products or services are subject to sales tax.
  2. Register for a sales tax permit.
  3. Calculate and collect tax appropriately in every state where you have nexus.
  4. Ensure your exemption certificates are valid, up-to-date, and readily accessible in case of an audit.
  5. Report and remit your taxable and exempt transactions on the proper return and to the proper taxing authority on time.