Frequently Asked Questions

Yes. Every business with a sales tax license must file a sales tax return, even if no sales were made during the period covered by the return. This would be referred to as a “zero dollar return.”

If your sales tax liability has declined, you may request less frequent filing from the specific state.

The Commissioner of Revenue is authorized to provide an extension of time to file the return for good cause (e.g., natural disaster creates a hardship for filing the return on time). In these cases, the tax remains due, and interest may apply to late payments.​

Keep in mind that interest and penalties will apply for sales tax returns that are filed late.

However, if you realize you’ve had sales tax nexus in several states but haven’t been collecting sales tax or filing tax returns, you can request a voluntary disclosure agreement (VDA). Note that VDAs are not an option if you’ve already been contacted or audited by a state. A successful VDA can mitigate penalties and interest on uncollected sales tax, but it’s best left to the experts to handle.

Most states will assign you a monthly, quarterly, or annual filing frequency. The more sales volume you have in a state, the more often that state will want you to file a sales tax return.