Let’s face it – with the laws continuously changing on state sales tax, it’s often difficult to know what and how to file sales in that state. States recognized a lot of the confusion, especially for remote sellers. As a result, the Streamlined Sales Tax (SST) was created to address the problem.
Before starting the process, you should check to see if you are legally required to register or register for sales. If you are unsure, contact that state for more information.
Registering through the Streamlined Sales Tax Registration System (SSTRS)
The Streamlined Sales Tax Registration System (SSTRS) is a multistate online filing system allowing businesses to file their sales tax returns. In order to use this platform, you must determine if you are going to contract with a CSP or Certified Service Provider or not. If you are, they can register for the business.
Once you register through the SSTRS, you are required to collect sales and use tax for that specific state. As a business entity, when you register in a state, the current date should be reflected when remitting sales tax. You will be listed in each streamlined state chosen at the time of registration and will be required to collect and pay sales tax.
It is important to note that the tax liability due before registering is still there.
What information needed to register?
Your business information is required. The type of entity, FEIN number, legal business name, DBA, phone number, state of incorporation, business address, contact person, email and phone number, NAICS Code, date of registration, states where your business is already registered, and the states where you sell merchandise remotely.
All registrations should receive a confirmation email. If the email is not received, log into the account to check that your information is correct.
What occurs after registering?
Once registered, the business entity receives a Streamlined Sales Tax ID. Every state you are registered in will receive a notification. Shortly after registration, you will start receiving correspondence on filing the returns. SSTID has 9 characters and is used for all Streamlined communications.
When it is time to file and pay your sales tax, the certified service provider (CSP) will handle this for you to all the Streamlined states you registered in monthly. If you do not have the assistance of a CSP, you are responsible for filing your return for each state using each state’s individual filing system. Your tax agreement indicates how often you are required to pay sales tax and when. Even if there is no tax to report, a return is still required.
If you no longer meet the criteria, you must contact the state and they will make the determination as to whether you can be released from the obligation.
A few states have registrants files only when sales have taken place. Contacting the state about their protocols is important, and if you receive a notice or some other correspondence, make sure you read it and respond.
Fee Obligations
There may be fees involved. Again, states differ. If you register in a state where you do not have to, there are no associated fees. If registering in a state is legally required, you may incur fees based on the state guidelines.
If you were initially registered for a state where you had no sales but now have sales, you may not have to re-register based on when you registered. Entities registering before 2019 are automatically registered across the board in all Streamlined Full Member States. No further registration is required.
Ending Registration
If you need to end your registration or update your resignation, there are certain steps to take.
To end the registration:
- Log into the SSTID account and select ‘Out of Business.’
- You will have to enter the last date of sales.
- If your registration is for one entity, there should be a one-off selection. If you are contemplating withdrawing from all states, just select “End Registration in all States.”
- The tax account will be closed as of the date.
- The same protocols work for updates, you just have to check the ‘Edit State Registrations.’
There will be instances where you will have to connect with the office to get more information, or you have passed the threshold for edits.
Work with Streamlined Sales Tax Registration Experts
Learning the nuances of sales tax registration can be difficult and time-consuming. Compliance is key in avoiding being flagged for an audit. Working with the right partner can give you peace of mind while navigating the process.
Registering with the required jurisdictions is an administrative burden and if you don’t address it correctly up front, you expose yourself to future audits. Contact our team today to learn more about our capabilities and eliminate the