| Automated Clearing House |
A national and governmental organization that has authority to process electronic payments, including, but not limited to the national automated clearing house association and the federal reserve system. |
| Certified Automated System (CAS) |
Computer software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction. |
| Certified Public Account (CPA) |
An individual who has received state certification to practice accounting. |
| Certified Service Provider (CSP) |
An agent certified under the agreement to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases. |
| E-Filing |
Electronic Filing |
| Exempt Sale |
Refers to a sale of a taxable item that is not subject to sales tax, usually due to the item being purchased for a specific use or for resale. |
| Retailer |
Sells to end consumers. |
| Resale Certificate |
If tangible personal property is being purchased for resale at retail, or to incorporate the property into a final product for sale or resale, that purchaser can provide the vendor with a “resale certificate”. |
| Sales Tax |
A tax that is levied on the sale of goods and services. The amount of sales tax charged is typically determined by the state or local government and is based on the price of the item being sold and the location of the sale. |
| Sales Tax Permit |
A sales tax permit is required for an individual, corporation, partnership or other legal entity engaged in business of selling tangible personal property and services. Note: If your business expands and you open a second location, you must obtain a new permit for the new location. Also, if the ownership or structure of the business changes (for example, if a sole proprietorship becomes a partnership or corporation), a new permit is required. |
| Tax Base |
The amount of the sale that is used to calculate the sales tax. This is typically the sale price of the taxable item, minus any applicable discounts or exemptions. |
| Tax Collection |
The process of collecting sales tax from customers and remitting it to the appropriate tax jurisdiction. |
| Tax Jurisdiction |
The state, county, or municipality that has the authority to impose a sales tax. |
| Tax Rate |
The percentage of the sales price that is charged as sales tax. Tax rates can vary by state, and may also vary by municipality within a state. |
| Taxable Event |
A sale that triggers the obligation to collect and remit sales tax. This typically occurs when a taxable item is sold or when a taxable service is performed. |
| Taxable Item |
A good or service that is subject to sales tax. This can include tangible items such as clothing, electronics, and furniture, as well as intangible items such as services like hair cuts, repairs, and consulting. |
| Taxable Sale |
A sale of a taxable item that is subject to sales tax. |
| Voluntary Disclosure Agreement |
Voluntary Disclosure Agreement (VDA) is a formal agreement between a taxpayer and a state tax authority. It allows the taxpayer to voluntarily disclose previously unpaid or underpaid sales taxes in exchange for certain benefits, such as reduced penalties or interest and protection from criminal prosecution. |
