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 sales 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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