How do I report a sale made prior to a tax rate increase/decrease if the payment was not collected until another filing period with a different saIes tax rate?
If you report your sales tax on a cash basis (you report tax at the time payment is received) and you do not receive payment until after a rate change occurs, you will need to report this sale differently from your other sales. This type of transaction is considered a “time sale”. To report “time sales”: • Fill out a separate return indicating the filing period in which the sales(s) was actually made. • Write “time sales” on the face of the return. (If “time sales” is not written on the return there is a possibility that the return could be processed as a late filed additional return.) • Calculate the tax due using the rate that was in effect at the time of the sale and put the rate on the return. • If you do not report your sales tax on a cash basis, you report the tax at the rate in effect on the date the sale took place, regardless of when payment is received.
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