Mark your calendars: U.S. business 2018 sales tax filing dates.

Aug 21 2018 | Contributing writer, TaxJar

Chances are when you think of "tax filing", you think of April. But did you know that January is in fact the busiest sales tax filing month of the year?
In January, even the smallest hobby sellers have a sales tax return due. That's why we call January the "Sales Tax Perfect Storm". To complicate matters, states want to hear from sellers on different days of the month. One state might want to hear from you on the 20th, another on the 31st, and yet another on the 15th.

Sales tax is governed at the state level, and retailers, including online sellers, are required to file sales tax to their nexus state or states either monthly, quarterly, or annually. In general, the higher your sales volume in a state, the more often that state wants you to file a sales tax return.

To help you file your sales tax return on time, we've put together a list of state sales tax due dates. Be sure to file your sales tax returns on time by finding your state and filing frequency.

For more on sales tax, check out TaxJar’s handy Getting Started Guides. 

TaxJar is a service that makes sales tax reporting and filing simple for more than 10,000 online sellers. All it takes is a single click to link up TaxJar to your PayPal account. Try a 30-day-free trial of TaxJar today and eliminate sales tax filing headaches from your life. Visit the user guarantee for terms and conditions. 
 

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

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Frequently asked questions.

Before setting your tax rates in PayPal Zettle, decide whether you’d like your prices to include or exclude tax. By default, tax isn’t included in the price and it’s added on when you check out.

You can change this in "Settings", "Tax Settings" in either the PayPal Zettle app or in your PayPal Zettle account online.

Default rates are taxes that are automatically enabled on new products and sales using the keypad.  

If you’re using Products when you sell, taxes can be added from the product: 

1. Go to "Products" and click Product Library. 
2. Add a new product.
3. Scroll down to the section called Tax.
4. Click the drop-down labeled “Select tax” or “Number selected taxes." This will show you a list of taxes that you’ve created, or an empty list, where you can either:  
a. Add a new tax by clicking Create New. 
b. Or choose a tax from the list.  
5. Save the product with the correct information.  

Taxes are synced between platforms so within a few minutes the tax rates you created in your PayPal Zettle account are available in the PayPal Zettle app. Tax rates can be edited or added from the app as well. 

In the PayPal Zettle app:
  1. Log in to your account in the app.
  2. Go to "Settings" and choose Library.
  3. Tap Taxes.
  4. If you’ve created taxes, these should show in a list below the price setting. 
  5. If you haven’t created taxes, click Create tax to add your first one. 
  6. Enter the label (name of your tax) and the percentage.
  7. Click Save.
Remember that it is your responsibility to make sure you’re collecting the right amount of tax for your region. Consult with a tax expert if you’re unsure. 

When you sell with PayPal Zettle, you can:
 
  • Adjust your taxes depending on the product, the sale, or even the day.
  • Add up to 15 different tax rates.
  • Set different taxes for various products.
  • Switch them on or off during a sale.  

Tax exemption


Occasionally, your product or customer may be eligible for tax exemption. In that case, there are 3 ways to set the exemption:  

1. If a product is always exempt from tax:

In your PayPal Zettle account:
 
  1. Go to your Product Library.
  2. Click the product that you want to exempt.
  3. Scroll down to the section "Tax."
  4. Click Exempt product from tax collection.
  5. Click Save. 

In the PayPal Zettle app:
 
  1. Go to Product library by tapping Sell in the menu.
  2. Enter 'edit mode' by tapping the edit button on bottom left.
  3. Tap the product that you want to exempt.
  4. Scroll down to the section "Tax."
  5. Tap Exempt product from tax collection.
  6. Tap Save. 

2. If a product is temporarily exempt from tax:
 
  1. Add the product to the cart in the PayPal Zettle app.
  2. Tap the product that you want to exempt in the cart.
  3. Tap Exempt from tax collection. 
Next time you add the product to the cart, taxes are enabled. If you want it to be permanently exempt, follow the steps in the previous section.

3. If the whole sale is exempt from tax collection:
 
  1. Add all the products being sold to the cart in the PayPal Zettle app.
  2. Tap tax summary shown below the products in the cart.
  3. Tap Exempt from tax collection.

If you’re taking payments using the custom amount keypad:
 
  1. Tap Tax in the top-right corner.
  2. Tap Exempt from tax collection.
This sale is now exempt from tax collection and "Tax Exempt" is shown on the receipts of that sale. You can also see this in the Product Report where tax-exempt sales are aggregated. 

How to edit taxes at the checkout


When you check out, you can choose or deselect any tax you’ve created. The changes you make to tax at the checkout only affect that sale. If you want to change tax settings permanently or create a new tax, do that in the Product Library and "Tax Settings."

Tax in receipts and reports


After a sale completes, you can see which taxes are applied on the receipt. The tax sum for each rate is listed, as well as the total tax. 

On the Reports page, you can see a breakdown of your collected sales taxes on both the Sales Report and the Product Report sections.

Sales taxes in Sales Details

You will find a breakdown of your collected sales taxes on the Sales Detail page/view in the Sales taxes table.  

The Sales taxes table provides information about the total tax amount collected for each individual tax, as well as the total tax amount collected for the displayed time period. Tax-exempt sales and sales for which no taxes were applied are also displayed in this table.  

Remember that the sales tax in this report is based on how you configured your business tax rates. For official filings, always confirm current local rates, then manually calculate tax using net taxable and nontaxable revenues.  

Sales taxes in Product Reports

In your Sales by Product report, you can see how much sales tax is collected on any product sold during the displayed time period. 

The tax column in the Sales by Product table shows the total tax amount collected for each individual product as well as the total tax amount collected for all products sold in the displayed time period. If no amount is shown in the tax column, it means that no tax was collected for that item. In the excel export of the report you can see whether the item was exempt from taxes or sold tax-free.   

(Note that this information is shown independently of whether you decided to show product prices including taxes or excluding taxes). 

You can buy a range of accessories that work with the PayPal Zettle app from the Zettle shop. We offer printers, cash drawers, barcode scanners, card reader stands, iPad stands and more. 

Get hardware for your business

You have the right to cancel your hardware purchase, without providing any reason, within 30 days from the day the card reader is delivered to you. To return your card reader, please contact customer service. 

Tips:

  • It’s up to you to pay any cost of the return shipping. 
  • You’re responsible for the product until PayPal Zettle receives it. We recommend shipping options that include tracking.
  • The hardware should be returned unused, in its original packaging with any accessories.
  • Once we’ve received your returned items, the refunded money is returned to the card used for the original purchase within 30 days.
  • It’s not possible to return and receive a refund for any Apple products purchased from us.

How do I receive a Sales Tax exemption on my order?

PayPal will refund sales tax on purchases to eligible Sales Tax exempt organizations with a properly completed exemption certificate or other acceptable proof of exempt status in the state where the items will be shipped.

Once you have completed your device purchase, please forward the confirmation email and a valid Sales and Use Tax Exemption Certificate to taxexempt@paypal.com. Please ensure the name of the purchaser matches the Certificate and all applicable fields are completed. Once your organization's Sales and Use Tax exemption has been verified, PayPal will refund all applicable taxes to your organization’s PayPal account. After approval, future orders will not be charged sales tax when the order is settled (it may appear on order confirmations), provided valid proof of exemption is on file for the state(s) where the items will be shipped. 


You'll be notified via email once your tax exempt request has been approved. It may take up to 3-5 business days.

Warranty

All of the items available at the store have a one-year warranty, except the printers, which have a four-year warranty.

Star Micronics

Star Micronics printers come with a four-year warranty and with a one-year warranty on all other products such as their cash drawer. Get support here.

Socket Mobile

Socket Mobile provides us with a small and easy-to-use Bluetooth barcode scanner. It comes with a one-year warranty. Get support here.

PayPal recommends you seek the advice of a professional tax advisor for any questions regarding your Crypto transactions for Gains/Loss, cost basis method and additional tax filing requirements.  

Total Gain
PayPal is now reflecting your crypto balance position with a real-time unrealized gains/loss based on current market conditions. This is shown in both dollars and percentage within the Crypto section of your PayPal account.
 
This amount is calculated by the difference between the price for which you purchased your crypto (your cost basis) and the current average selling price including the current exchange rate and spread.
 
Cost Basis – Highest In, First Out (HIFO)
If you have sold any crypto with PayPal, we’ll use the Highest In/First Out (HIFO)* method to identify the disposition of assets that have a higher cost basis and could potentially result in a smaller capital gain or larger capital loss. The information provided by PayPal is not intended to be and should not be construed as tax advice. You should consult your tax advisor regarding which cost basis method is appropriate for your specific situation.
 
PayPal Documentation
To assist taxpayers with determining their cost basis, PayPal will be providing several documents:
  • Transaction Statement: This is a .CSV file that will list the Cryptocurrency transactions along with date acquired or sold, quantity of transaction, fee per transaction, total value, and transaction ID.
  • Gains and Losses Statement: This report is a .CSV file that uses Highest In/First Out (HIFO)* method of cost basis, which is a form of specific share identification method as described in IRS Publication 550. This report is in line with the data fields required on the IRS Form 8949 (Sales and Other Dispositions of Capital Assets). PayPal uses the HIFO method to identify the disposition of assets that have a higher cost basis and could potentially result in a smaller capital gain or larger capital loss. The information provided by PayPal is not intended to be and should not be construed as tax advice. You should consult your tax advisor regarding which cost basis method is appropriate for your specific situation.
*You won't receive these documents if you don't have any eligible sales.
*Highest cost does not consider the length of time you held your crypto assets. If your position is made up of several tax lots and they consist of both long- and short-term holdings, highest cost may deliver the lowest gains, but not the lowest tax rate, due to the difference between short- and long-term capital gains tax rates.

You can access your Form 1099-K from your PayPal account from January 31 and your Crypto gains and loss statement from February 15. Please go to the new PayPal Statements & Tax Center. Merchants, please go to your Tax Statement Page.

Note:

  • If tax Forms are  issued for your account, they will be listed here and available to download or print.
  • If a tax Form or Statement is not listed and you still feel like you should have one, please contact PayPal for assistance.
  • A Reconciliation Report is included with your 1099-K that will list all of the transactions included in your total gross sales for goods and services.
  • A Transactions Statement is made available with your Crypto Gains and Loss Statement that will list all of your Crypto sale transactions.
  • Additionally, in the event that you’ve closed your PayPal account, your Form 1099-K will be mailed to your address on file


Here are some additional resources that may be helpful when completing your taxes:
Download your daily, monthly, or yearly business report
Download your Transaction History

Transaction Finder

To calculate your quarterly PayPal shipping charges, you can use the Transaction Finder. Here's how:

  1. Click Reports.
  2. Click Transaction Finder towards the bottom of the screen, listed under “History and search.”
  3. Choose your date range (no greater than 90 days at a time).
  4. Click the dropdown for “Transaction Type” and choose Shipping.
  5. Click Search.
  6. Choose the type of file you want to download (PDF or Excel), then click Download.

This will create a quarterly report of PayPal USPS and UPS shipping charges, listing a total dollar amount at the bottom. You may repeat this process for each quarter and add up the figures to obtain your full year’s shipping charges.

Click here for more tax information and FAQs.



 

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