The development and use of paperless formats promotes efficiency, reduces processing costs and therefore, aids in reducing the overall cost of government. Customers can call for more information. Publications Publications assist in understanding the provisions of Kansas tax laws and regulations and are designed for informational purposes only.
The contents should not be used as authority to support a technical position. Consumer use tax sometimes referred to as a compensating use tax is complementary to the sales tax. Typically, consumer use tax is imposed on transactions that are subject to sales tax, but tax was not charged. Usually, this occurs when items are purchased out-of-state, ordered through the mail, over the Internet, or by phone from another state.
It is imposed on the use, storage, or consumption of tangible personal property in the state. Retailers are not usually required to collect sales tax on taxable purchases from consumers in states where the retailer does not have some connection to the state known as "nexus".
This connection is created by retailers if they have a physical presence, make regular deliveries with their own vehicles into the state, have sales representatives located in the state, economic nexus, affiliate nexus, click-through nexus or marketplace nexus.
The use tax burden falls on the consumer to calculate and remit the tax to his or her state government. Therefore, if the seller does not collect the tax from the purchaser and the transaction is taxable, the purchaser is responsible for remitting the use tax to the state. Consumer use taxes are imposed by state and local governments for two reasons — to prevent someone from evading a sales tax by buying goods or taxable services from a non-taxing state and shipping them into the state that imposes the sales tax.
The use tax protects retailers located in the state or municipality because it removes the incentive for consumers to shop outside that locality in order to avoid paying the sales tax. The use tax rate is the same as the sales tax rate, which includes state and may include local sales taxes. A taxpayer who does not pay use tax may be subject to interest and penalties.
A person buys a vehicle from a dealer in a neighboring state and the dealer does not charge sales tax on the vehicle. ABC Manufacturing Co.
XYZ Wholesale Co. The calculators would have been charged sales tax if they had been purchased from an in-state vendor. Join this upcoming virtual event to learn why B2B ecommerce is at a tipping point like never before. Learn about trends and themes impacting current and future digital tax strategy. Every day, companies are transitioning from traditional, manual up-keep of sales tax to automation.
Use tax is due whether the property is shipped into Kansas or picked up in another state and brought back to Kansas. It applies only to tangible personal property, labor services are not subject to use tax. Like sales tax, compensating use tax is based on the total cost of the goods purchases, including postage, shipping, handling, or transportation charges.
0コメント