Do I Have to Report My Sales Tax Even If I Don’t Owe Any?

Every business owner might have these questions that if you don’t have any sales tax to a state in which you are doing business then are you required to file a tax return with the state authorities or not? Many people have this question when they are doing sales tax filing.

Most businesses consider this because you never know if or when you might encounter some scenario related to it. Online businesses or online sellers should monitor their sales tax nexus. This sales tax nexus requires them to pay taxes on the sales which are made by the residents of that state. In some cases, they also have to file a tax return even if they don’t owe any sales tax.

For example, your online clothing business may sell their products nationwide but they fail to make any sales in Utah, where your warehouse is and where it gives you sales tax nexus. In situations like this, you don’t need to file a tax return, but the state requires your business to do so.

Below mentioned are five different states that require you to remit sales tax filings even when you don’t owe any sales tax or had made any sales in the reporting period.

 

Florida

In the state of Florida, businesses are required to file a tax return even though they are not owed any. The Florida Department of Revenue (DOR) says that businesses or online stores must determine their activities or products which are subjected to sales tax, which applies sale, rental, lease, etc.

New York

In the state of New York, the Department of Taxation and Finance states that if you are registered for sales tax then it is requiring for you to file a sales tax return. Businesses have to file sales tax returns, even if they have not made any taxable sales or purchases during the reporting period of the sales tax. The minimum penalty for late filing even if you don’t owe any sales tax is around $50.

Alabama

The Department of Revenue in the state of Alabama points out that the online sellers or businesses must file a tax return for a month in which they had no sales or any taxable sales. When it comes to online businesses in this state, you need to file a tax return each and every month. Though you have to file after you have established a tax account in the state.

Texas

In the state of Texas, the state enacts sales tax on retail sales, leases, and rentals of most of the goods as well as the taxable services. Online businesses should also keep in mind that the Texas law imposes a penalty of $50 for late filing even if you don’t owe the state any sales tax.

South Carolina

In the state of South Carolina, the sales tax is imposed on the sale of certain goods and services only, and you have to file a tax return even if you don’t have any due or had any sales for the month. All the retails sales in the state are subjected to sales tax.