In today’s electronic shopping world, businesses can purchase goods with a click of a button. Many times, items are purchased from out of state vendors, thru the internet, or under sales tax exemption certificates resulting in the vendor NOT collecting sales tax. However, with the concept of use taxes, you still may owe use taxes to your State. For example, if your business uses, gives away, stores or consumes any item that is not utilized in manufacturing or resale, your business would require paying use tax as explained in this California Franchise Tax Board article.
I help clients comply with the use tax requirement by reviewing and developing business process to capture information to properly report and pay use taxes. In addition, I guide clients thru sales tax audits, which many times are specially targeting use tax compliance.
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