california-sales-tax-returnsCalifornia has many rules about sales tax reporting and the frequency of the reporting requirements vary depending on the reported amount of sales tax. Any tangible personal property that is sold in a retail environment is subject to California sales tax. Furniture, clothing, toys, appliances and other similar items are all considered tangible personal property. In certain situations, labor and service costs can be subject to sales tax if they result in the creation of tangible personal property.

Archibald Tax Service has many years of experience in completing sales tax returns for businesses. Considering the amount of rules and regulations on sales tax filings in California, it can be a very overwhelming task for a business owner to complete. We are here every step of the way and will help you determine your filing frequency, reported sales tax amounts and the filing of your sales tax returns.

Here is some helpful information about California Sales Tax requirements:

[accordian][toggle title=”Business Registration Requirements” open=”no”]If you are a wholesaler, manufacturer, or retailers and you plan to sell tangible personal property in California, you must obtain a seller’s permit.[/toggle][toggle title=”Filing Frequency Deadlines” open=”no”]The State Board of Equalization has filing frequency requirements depending on your reported sales tax or your anticipated taxable sales. The filing frequencies are annually, fiscal yearly quarterly, quarterly prepay and monthly. Below is a guideline to estimate your filing frequency based on the amount of sales tax you reported or anticipate reporting.

  • $0 – $100 per month = Annual
  • $101 – $1,200 per month = Quarterly
  • $1,201 – $9,999 per month = Monthly
  • $10,000+ per month = Monthly with EFT

For exact due dates in each reporting period, visit http://www.boe.ca.gov/sutax/fill_dates.htm[/toggle][toggle title=”Record Keeping Requirements” open=”no”]The State Board of Equalization requires that sales and use tax records are kept for four years, unless they provide written authorization stating otherwise. BOE suggests that the following records are kept:

  • All records pertaining to transactions involving sales or use tax liability
  • The normal books of account (books of account can include information stored on computers)
  • Documents of original entry (for example, bills, receipts, invoices, job orders, contracts, or other documents) supporting the entries in the books of account
  • All schedules or working papers used to prepare your tax returns

[/toggle][toggle title=”Delivery Charges” open=”no”]Delivery charges may be subject to tax depending on a number of factors, including how the delivery charge was listed on the bill or invoice, the actual amount of the delivery charge compared to what the consumer was charged and how the delivery was completed (US Mail, common carrier, or independent delivery contractor). If you charge consumers a delivery charge and are unsure if the delivery charges is subject to sales tax, give us a call and we will be happy to help you determine this information.[/toggle][/accordian]