“All individuals and entities having nexus with government authorities in Honolulu, Hawaii Collect 4% sales tax from their customers. This is applicable in the form of General Sales Tax (GET).”
What Does The Hawaii Sales Tax 2022 For Businesses Mean?
Hawaii Government allows local tax jurisdictions to collect an additional 0.5% sales tax.
Honolulu does not collect any sales tax. The additional 0.5% is the county sales tax.
Certain businesses are exempt from paying this tax in Honolulu, Hawaii whereas the rest of the individuals and entities are obliged to pay it.
How Much Is The Sales Tax For Businesses in Hawaii?
Government authorities in Hawaii collect 4% sales tax from businesses. Local tax jurisdictions reserve the right to collect a 0.5% additional amount as county sales tax.
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Hawaii collects sales tax in the form of General Excise Tax. All individuals and entities require nexus with the government authorities in Honolulu, Hawaii to collect sales tax from their customers.
Who is eligible for nexus?
All individuals and entities exceeding the count of 200 taxable transactions and the $100,000 threshold limit are eligible for nexus.
All vendors fulfilling these two Terms & Conditions can collect this tax from their customers.
This could be possible only when you have a sales tax permit in Hawaii.
Steps to get a sales tax permit in Hawaii
The process is easy and hassle-free if you have the following set of documents at the time of registration:
- Personal identification-related documents like SSN (Social Security Number and Address Proo.
- Corporate information-related documents like EIN (Employee Identification Number) and Address Proof.
- Papers to prove your accounting period or cycle (Calendar or fiscal year).
There are certain things you will have to specify in your application. For example:
- You will have to mention the corporate entity type.
- Specify the accounting method you prefer.
- Highlight miscellaneous information related to your corporate activities.
- The date of initiating the corporate activities.
- Projected monthly taxable and non-taxable sales.
- The list and nature of products you are likely to sell.
You will have to pay a $20 fee in addition to the business registration fee. This fee varies according to the type and nature of your business.
Steps to file sales tax:
There are two options at your disposal.
- Visit Hawaii Tax Online
- Call or message us with your tax filing requirements.
Do You Need To Collect Hawaii Sales Tax For Your Ecommerce Business?
All individuals and entities having nexus with the government in Hawaii are obliged to collect sales in the form of GET from their customers. This includes online businesses also.
What Types Of Goods And Services Are Taxable Under Hawaii Sales Tax?
All types of registered and non-registered businesses in Hawaii are obliged to collect sales tax from their customers and pay it to the government.
Take a look at the items and services taxable in Hawaii.
- Physical property.
- Home appliances.
- Motor vehicles.
Anything delivered, downloaded, and purchased from iTunes, Amazon, or digitally is taxable.
The list of items exempted:
- Medicines prescribed.
- Purchases carried out with food stamps.
- Government agencies.
- Nonprofit organizations.
- Fraternal orders.
You will find the complete list on the official website of The Department of Taxation, Hawaii Government.
How often do you need to file a sales tax return in Hawaii?
You can choose the filing frequency as per your choice. You can file monthly, weekly, and yearly.
What happens if you fail to file sales tax by the due date?
The due date is always the 20th of every month to file taxes and returns. The date could be different for those who file semi-yearly or annually. The next business day automatically becomes the due date if the due date falls on a holiday or a weekend.
- Do not be late.
- Don’t file fake or fraudulent returns.
- Always file full returns instead of filing the half returns.
Otherwise, the government in Hawaii is always ready to burn a big hole in your pocket with hefty financial penalties and interest charges.
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