You have enough on your plate, figuring out sales tax doesn’t need to be one of them.
We have put together some helpful resources for restaurants and brick-and-mortar businesses to help you understand and manage your sales tax better. Below you will find state-specific sales tax information, a calculator to help you figure out your prices, states that offer on-time filing discounts, and more.
Hopefully, you can get the answers you need so you can get back to running and growing your business!
Below is a list of sales tax resources for your business:
Looking for sales tax resources for your specific state? Use our state resources dropdown below to find important sales tax information like specific regulations, sales tax rates, what is taxable and what is not, when your sales tax is due, and more.
If you have non-taxable or tax-exempt sales, you are going to need to keep track of them. When a business does not charge sales tax, it is the business’s responsibility to document and justify the reason. It is the merchant’s responsibility to ask for, keep a copy of, and associate a “Tax Exemption Certificate” with the sale.
In an audit, failure to have a tax exemption certificate on file for a particular sale often results in the merchant paying the sales tax out of its own pocket.
It is easy to be compliant as long as you have this simple process in place:
You can read more about how and why you need to keep track of tax-exempt sales here.
Do you want to include sales tax in the price of an item? Our simple sales tax calculator can help.
Use the form below to determine the correct price plus tax for the item.
Restaurant owners often wonder whether 3rd party apps such as Grubhub and Uber Eats actually generate added revenue or added expense for their restaurant. From mismanaged workflows to overpayment of sales tax, these apps can cause more pain than profit. To maximize profit and minimize pain, it’s imperative that owners understand and manage them correctly.
The best practice and most efficient way to manage these apps are to run orders through the POS. This makes the POS system the official record of all sales, both those in the restaurant and from 3rd party apps. Setting up the POS this way will create efficient workflows and help manage multiple revenue streams in one place. Failure to do this can lead to kitchen chaos, poor customer experiences and costly fines and penalties or overpayment of sales tax.
Managing sales tax for 3rd party apps is complex because each app creates a new revenue stream to manage. Making the POS the official record of sale and running all 3rd party orders through the POS will make managing sales tax much easier.
Here are instructions on how to set up your POS for 3rd party apps when sales tax is remitted to you and when they are required to remit sales tax.
Hover over the states in blue to see what on-time sales tax filing discounts are available.
Sales tax audits are a necessary part of government oversight to ensure businesses are collecting and paying their fair share of taxes. In the State’s eyes, merchants who cheat on sales tax are stealing public funds, giving their business an unfair advantage.
Sales tax is a significant part of most state budgets and they take compliance seriously issuing hefty fines and penalties to businesses who do not play by the rules. Under the law, merchants have a fiduciary or legal responsibility to comply.
Following a few best practices can help mitigate the risks and hassles of an audit:
If you are using one of the Point of Sale systems below, you can actually fully automate your sales tax. DAVO by Avalara uses an API connection with the point of sale system to see sales tax collections from the previous day. Each day, we connect to your bank account and use an ACH to pull out the previous day’s sales tax funds and set these funds aside in an ESCROW-like account. When sales taxes are due to the state, we file and pay them on time and in full for you.
Visit davosalestax.com/integrations to see the latest list of POS systems supported by DAVO by Avalara.
"I don't know why we waited!! So much easier than trying to keep up with sales tax AND run a business. 100% satisfied!"
- Donald, Verna Mae's Eatery
“It’s such a weight off your shoulders to know the money for taxes is being saved properly. Having this feature now available on Toast is a lifesaver!”
- Tumara, Joselitos Mexican Restaurant
"This is the best app to take one more thing off your plate as a business owner! Customer service with DAVO is also excellent. They are always there to answer any questions that may come up."
- Jessica, Moto Pizza