Sales tax concerns if you sell through multiple channels
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
Hawaii's general excise tax (i.e. sales tax) is a business privilege tax that is imposed on the gross receipts of virtually any economic activity carried on in the state. Whereas most states impose a sales tax on the sale of tangible personal property and only certain enumerated services, Hawaii’s general excise tax is imposed on all sales (absent a few exceptions such as sales to nonprofit organizations).
The general excise tax is complemented by a use tax that is imposed on a buyer based on the value of tangible personal property and services purchased or brought into the state from an unlicensed seller for use in the state.
The use tax is generally 4%. However, for persons who import goods for resale at retail in Hawaii, the rate is 0.5%
Counties are authorized to levy a surcharge on the state general excise tax and use tax to fund public transportation systems. The surcharge cannot be at a rate greater than one half percent (0.5%) of all gross proceeds and gross income subject to general excise and use tax.
General excise and use tax returns must be filed periodically as in any other state. However, in addition to the monthly, quarterly or semiannual returns, an annual reconciliation report is also required to be filed.
Stay tuned for more of Jeff's EYE ON series as he blogs about sales and use tax State by State.
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
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