What do I need to know to file my sales tax report?

It can be a challenge to convert your POS numbers to something that fits into the Washington State Department of Revenue report.

Here's the basics on how you need to break your sales down:

  • Gross sales split out into services, retailing, and wholesaling.
  • For each of the above, whether these sales are in-state or interstate.
  • Sales of products your company manufactured (split out into retailing and wholesaling).
  • For retail sales, any sales that are tax exempt and why (packaged food sales is the main one we see).
  • For retail sales, the 4-digit code for the district where the product was delivered

Other things you might need to have on hand:

  • Any sales sold "at gross" (i.e. tax included).
  • Tax you paid (and taxable amount) on products that you subsequently resold.
  • Dollar and liter amounts of spirits sold.
  • Dollar value of any samples you used (for tastings, product samplings)--these are subject to Use Tax.
  • Products you purchased from an individual or an out-of-state vendor and didn't pay sales tax on--these are also subject to Use Tax.

Also, don't include your gift cards sold in your gross sales!  These should go directly to a liability account on your balance sheet. The income is not taxable until the customer brings in the gift card and buys something with it.

Confused yet?

These are just a few notes. If you would like us to examine your situation, or take over this no fun task, get in contact!

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