If you are a business owner selling goods to customers, you are required to remit sales tax to the government and the same goes for product purchases. But how do you maintain accurate records for tax collections and payments? This is where a commercial tax accountant West Palm Beach would be beneficial to your business. To ensure that companies and individuals comply with tax laws, a tax accountant’s duty is to help individuals and companies file their federal and state income tax returns. Some tax accountants also help businesses and individuals save money in taxes by offering them tax planning advice.
Different Types of Commercial Tax
A commercial tax which is sometimes referred to as consumption tax is applicable to all or any endeavors in which business or commercial activity takes place. The methodology of commercial tax is:
- Sales-based Commercial Tax – This tax is established as a contingency resulting from the gross value of a service or product. This usually includes a percentage of the gross value added to the final sale price. This is considered to be an indirect tax considering the merchant collects the taxes from the consumer rather than the consumer paying taxes to the governing body.
- Excised-based Commercial Tax – This is applicable to a specific category or group of products or services. This means that the manufacturer may share the tax burden with its consumers. Items such as alcohol, fuel, and cigarettes are typically considered excise taxes.
- VAT-based Commercial Tax – This relies on the net value of a service or product related to production, marketing, and distribution fees incurred in its sale leading in a single, one-time payment transferred to the governing body.
- Consumption-based Commercial Tax – Both incurred on an individual basis as well as on a collective basis. This is derived from the number of purchases taking place within a respective economy. This is obtained in conjunction with the rate of purchase to an individual service or product.
If you are a business seeking the help of a certified commercial tax accountant West Palm Beach, contact Andrea Lawrence Tax Accounting today for any tax related-inquiries and services.