Each state will notify you as to when you need to start filing and remitting the taxes you owe that state.
You are responsible for collecting taxes beginning with the “first date of sales” entered when you register through the Streamlined Sales Tax Registration System (SSTRS). You are responsible for filing and paying taxes in all Streamlined full member states and in Tennessee if you also registered in Tennessee.
If you indicated you did NOT have and do not anticipate making sales in a state when you registered, you are not required to file returns in that state until you have sales there. Contact the state directly if you have sales and need to start filing returns.
Note: Even though you indicated that you did not and do not anticipate making sales in a state, that state may still send you registration information. You will need this registration information if you start making sales in that state.
If you are already registered through the SSTRS, but you plan to contract with a Certified Service Provider (CSP), you are responsible for filing returns and paying tax directly to each state until you are under contract with the CSP. Once you have a contract with the CSP, the CSP will file returns and remit taxes to the Streamlined states for you in accordance with the terms of that contract. The CSP is required to file returns for each Streamlined state on a monthly basis.
If you contact the CSP before you register, the CSP can register your company and will begin to file returns and make remittances beginning with the time you and the CSP agree to.
Note: Registering through the SSTRS or contracting with a CSP does not remove any prior filing requirement or tax liability if you had a legal requirement to be registered in a state. States can require returns and payment of tax for any time period you are legally required to be registered.
Each state sets its due dates for filing returns and paying taxes. The due date may not be earlier than the 20th of the month following the reporting period.
Example: Sales tax is collected on transactions that occur in January. The due date for the return and the payment of those taxes cannot be earlier than February 20th.
When the due date for a return or payment falls on a Saturday or Sunday or legal holiday, the return or payment is due on the next business day.
If the Federal Reserve Bank is closed on a due date that prohibits you from being able to make a payment by ACH Debit or Credit, the payment will be accepted as timely if made on the next day the Federal Reserve Bank is open.
The CSP will file your returns directly with each state each month using a Simplified Electronic Return (SER). You will send one payment for all the state’s taxes to the CSP and the CSP will remit the taxes due directly to each state.
Note: If you register through the Streamlined Sales Tax Registration System (SSTRS) prior to having a contract with a CSP, you are responsible for filing the returns and paying the tax directly to each state, until the contract with the CSP begins. The CSP will file the returns and remit the tax for you once the contract has begun.
States use these terms to identify which sellers use a Certified Service Provider (CSP) or a Certified Automated System (CAS).
The Technology Models are:
A “Model One” seller is a “volunteer seller” that has contracted with a Certified Service Provider (CSP) to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases.
A “Model Two” seller is a seller that has contracted with a provider to use their CAS. A CAS is designed for a business that wants to use the tax calculation software that has been certified by the states while keeping the responsibility for filing returns and remitting the tax.
A “Model Three” seller has a proprietary system that calculates tax due for each jurisdiction that meets the performance standards set by the states. A seller must have a certain level of sales and a proprietary system that calculates tax due for each jurisdiction.
A “Model Four” seller does not use a CSP or a CAS.
A simplified electronic return (SER) is a uniform, electronically filed return that all Streamlined Full Member States accept. States may only require a single tax return for each tax period for each seller. Taxes for all taxing jurisdictions within the state are reported on a single SER.
Sellers, other than sellers using a CSP or CAS, may file using either the SER or the state's online filing system.
Part 2 of the SER contains information relating to exempt sales in that state. Part 2 provides the total amount of exempt sales for the following exemption types: Agriculture, Direct Pay, Government/Exempt Organizations, Manufacturing, Resale, or other. Your state may or may not have each of these exemptions.
States must notify the Governing Board if it requires Part 2 of the SER. Only sellers that have a legal requirement to register in a state are responsible for filing Part 2 of the SER if that state requires require Part 2.
You may file Part 2 of the SER with each SER or once a year with the December SER. If filed with the December return, Part 2 is to include the total for all 12 months of that calendar year.
Any seller registered with a Streamlined Full Member State may file a SER. This includes sellers registered directly with a state or sellers registered through the Streamlined Sales Tax Registration System.
Prior to filing a SER, you must contact the state for instructions. The state may require you to test the transmission. You must use the SCHEMA for the SER and be able to access the state's webservices. Instructions are in the Streamlined Technology Guide.
Certified Services Providers (CSP) are required to file SERs for sellers that contract for the CSP’s services.
Sellers that use a Certified Automated System (CAS) are required to file using a SER.