Bookkeeping Services & Sales Tax Holidays
Bookkeeping Services Providers Adjust for Sales Tax Holidays
All across the country, back-to-school sales tax holidays have already taken place, are in
progress now or are on the horizon. While these tax holidays offer parents of school age
children significant savings on clothing, electronics and school supplies, they can be a headache
for in-house bookkeepers and bookkeeping services providers. While the task of collecting and
reporting sales tax is already a complex tax for businesses that have retail sales, the back-to-
school tax holidays add a whole new layer of complexity.
items that are related to returning to school. In addition to these temporary tax breaks, several
states do not have a state sales tax in the first place and a couple of others already exempt
certain items that appear on most tax holiday lists. Some of the items that are commonly
exempt from sales tax on certain dates preceding the opening of school are clothing, shoes,
school supplies, art supplies, instructional materials, computers and some other electronic
equipment. Within these categories, most states put a ceiling on the maximum dollar amount
that can be spent on each individual item. Louisiana’s tax holiday goes beyond this to exempt
from sales tax almost every item that is purchased for non-business use for less than $2500 per
item. Even if an item costs more than $2500, sales tax is only charged on the amount in excess
of the per-item ceiling.
While the sales tax holidays offer significant savings to consumers who are projected to spend
over $600 per family to get kids ready for school this year, they add a whole new layer of
difficulty to sales tax collecting and reporting. Even outside of the back-to-school tax holidays,
sales tax reporting and compliance is a major task for bookkeepers and bookkeeping services
providers serving retail businesses. These businesses must apply for permits in any jurisdictions
where sales are made and then collect sales taxes according to the current set rates. This job is
complicated by the fact that rates may vary according to the service or item sold and may often
be reduced by such things as rebates, returns, discounts, service costs and transportation
charges. In addition, to tracking sales tax collection, bookkeepers must keep the businesses
they serve sales tax compliant by making all required sales tax payments and filing the
necessary sales tax returns.
bookkeeping services providers that serve businesses with a retail arm. Not only does it involve
taking into account varying rates for different jurisdictions but also must take into account
different rates for different items or services. Keeping up with all of these variations is a
complicated and involved task in itself. Add, on top of this, all of the sales tax exemptions and
variations that come with back-to-school sales tax holidays and the sales tax functions of
certain company bookkeepers becomes even greater!
If your business is seeking an outsourced bookkeeping solution, the experienced professionals at Orange
and bookkeepers are equipped to serve Orange County businesses of any size, structure or industry
and business consulting services. Contact us by phone at (949) 242-9852 at or by email at
firstname.lastname@example.org to receive a free, no obligation consultation.