Hawaii: Sales Tax Handbook
How to file your sales taxes in Hawaii
Once your business has a Hawaii sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Hawaii government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Hawaii
If the seller has an in-state location in the state of Hawaii, they are legally required to collect sales tax at the tax rate of the area where the buyer is located, as Hawaii is a destination based sales tax state.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge the local rate of sales tax from the buyer's location, so long as the seller has tax nexus in the state. Hawaii's statewide tax rate is 4%, but individual areas may add on addition local taxes.
Sales Tax Collection Discounts In Hawaii
While many states allow merchants to keep a small percentage of the sales tax they collect as a collection discount, or compensation for the work put in collecting the tax on behalf of the state, Hawaii does not currently allow this.
Your Hawaii Sales Tax Filing Requirements
To file sales tax in the state of Hawaii, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
In the state of Hawaii, all taxpayers are given three options for filing taxes. One is filing online at the E-file website. You can also file manually through the mail using the General Excise Form.
Tax payers in the state of Hawaii should be aware that the amount of taxes they file affects how often they are required to file taxes. Tax payers who pay less than two thousand dollars per year are required to file semi annually. Those who pay greater than two thousand but less than four thousand mist file quarterly. Those who pay more than four thousand as month must pay monthly.
Your Hawaii Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th day of the month following reporting period for filing general excise tax and use tax returns. For a list of this year's actual due dates, see our calendar of Hawaii sales tax filing due dates.
Where To File Your Hawaii Sales Tax Return:
Filing Your Hawaii Sales Tax Returns Online
Hawaii supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Hawaii allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for taxpayers who have an annual tax liability that is greater than one hundred thousand dollars from any taxable year.
You can process your required sales tax filings and payments online using the official Hawaii E-File Services. website, which can be found here . You should have received credentials to access your Hawaii E-File Services. account when you applied for your Hawaii sales tax license.
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