Welcome to our handy guide on Hawaii sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Hawaii to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Hawaii.
Sales Tax Rate
Physical NexusIf you have a physical presence like a store, office, or warehouse, that's a physical nexus. Employees in Hawaii? That's another sign. Storing products in a local warehouse or owning property? More signs. Even regular business visits to Hawaii can establish a physical nexus.
Economic NexusNo matter where you are, if your business makes $100,000 in sales or has 200 transactions with Hawaiian customers in a year, you've got an economic nexus.
Affiliate NexusIf you have an affiliate in Hawaii participating in a mutual merchandise return and loyalty points program with your business, that's an affiliate nexus. The Hawaii Department of Taxation sees this as doing business in Hawaii, requiring you to collect and remit sales tax on sales to Hawaiian residents.
Click-Through NexusGood news! Hawaii doesn't have click-through nexus laws. But remember Hawaii's economic nexus law: if you hit $100,000 in sales or 200 transactions in Hawaii, you need to collect and remit sales tax.
Marketplace NexusUsing a marketplace facilitator to sell in Hawaii? If they hit $100,000 in sales or 200 transactions, they must handle the sales tax, no matter where your business is based.
Spam is tax-free in Hawaii. It’s the Aloha State’s favorite tax-free treat.
Steps for Registering to File Sales Tax in Hawaii
Cost of Registering for a Hawaii Sales Tax LicenseRegistering for a sales tax license in Hawaii costs $20, a fee that's non-refundable. But, if you're a new business, there's good news! You might be eligible for a fee waiver if:
Do You Need an EIN for a Hawaii Sales Tax License?Absolutely! Your Federal Tax ID Number or EIN is crucial, much like a passport for your business. This unique number identifies your business to the government.
Other Agencies to Register With in HawaiiAs you set up your business in Hawaii, you might need to register with a few other agencies, depending on your business type:
What Sales are Subject to Sales Tax in Hawaii?Hawaii's GET covers almost every business activity under its warm, tropical embrace. Here's a look at what's included:
Is Software as a Service (SaaS) Taxed in Hawaii?Yes, SaaS is indeed taxed in Hawaii. Considered a taxable service, SaaS falls under the state's 4.4% General Excise Tax (GET).
Exemptions from Hawaii's GETNot every transaction is treated equally under the General Excise Tax (GET). Let's explore those special transactions that get to lounge on the beach without the GET tagging along.
Eligibility for Hawaii's Sales Tax ExemptionsTo join the exclusive club of Hawaii's sales tax exemptions, here's who might get an invitation:
Handling Sales Tax-Exempt Customers in HawaiiDealing with a sales tax-exempt customer in Hawaii? Here's your step-by-step guide:
Lost a Hawaii Sales Tax Exemption Certificate?Misplaced a certificate? Here's how to handle it:
Renting a surfboard in Hawaii comes with a tax. It’s the price you pay for riding those incredible waves.
What If a Filing Date Falls on a Weekend or Holiday?If your filing date lands on a weekend or holiday, the Hawaii Department of Taxation gives you extra time. You'll have until the next business day to file and pay.
How to File a Hawaii Sales Tax ReturnFiling your GET return is a breeze when you follow these steps:
Penalties for Late Filing and Payment
Hawaii Sales Tax DiscountsGood news! Hawaii rewards timely filers and payers with discounts:
Hawaii Sales Tax HolidaysAs of now, Hawaii doesn't celebrate sales tax holidays.
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