Kansas Sales Tax Guide
Chapter 5: Filing and paying Kansas sales tax
You're registered with the Kansas Department of Revenue and you've begun collecting sales tax. Congratulations! Remember, those tax dollars don't belong to you. As an agent of the state of Kansas, your role is that of intermediary transferring tax dollars from consumers to state and local tax authorities. Let's take a deeper look at how filing Kansas sales tax returns impacts your business.What does it mean to file an Kansas sales tax return?
Technically speaking, filing Kansas sales tax returns is a two-step process comprised of submitting the required sales data and remitting the collected tax dollars (if any) to state and local tax authorities.
In most states, there are a number of options for submitting sales tax data to the state. Business owners may complete a Kansas sales tax filing form and mail it to the Kansas Department of Revenue or they can file electronically online. In all states, filing online is recommended.
The filing process forces the business owner to detail their total sales, the amount of sales tax they have collected, and from where. The Kansas Department of Revenue wants to be kept up to date on your business growth (or lack thereof) to make sure they are getting the tax dollars due. By completing ongoing filing of monthly, quarterly, or semi-annual, or annual Kansas sales tax returns, they stay abreast of your growing company.When am I required to file my sales tax return?
The Kansas Department of Revenue will assign you a filing frequency. Typically, this is determined by the size of your business. State governments typically ask larger businesses to file more frequently. Visit our Kansas filing due dates page for more information.Am I required to file and pay my Kansas sales tax at the same time?
Kansas sales tax returns must be filed and paid at the same time and are governed by the same due date.I want to webfile my Kansas sales tax. What are my options?
Avalara has built the TrustFile product to allow business owners a quick and easy way to prepare and webfile Kansas sales tax returns. Users can sign up and use the service to prepare Kansas returns free for 30-days.
Filers may also file directly with the Kansas Department of Revenue by visiting their site and entering your transaction data manually. This is a free service, but preparing Kansas sales tax (breaking it down by jurisdiction) can be time consuming - especially for larger sellers.Can a 3rd party file my sales tax on my behalf?
Yes! Many business owners recognize they are not a tax professional and therefore, choose to outsource their sales tax sales and use tax filing to services like Avalara TrustFile or to an accountant or bookkeeper. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and a lack of deep knowledge about Kansas sales tax code.What happens if I file or pay my sales tax return late?
There is a penalty of 1%, of the amount due and not paid for each month or fraction of month the payment is late, up to 24%. Late payment is any payment due that is not made on or before its due date.
Interest is also charged on late payments at a rate tied to the Federal underpayment rate (changes yearly). For 2014 and through 12/31/2015 the rate is .0333% per month or fraction of a month, or APR of 4%. Should you need to know rates prior to 2014 or after 2015, check the Kansas Penalty and Interest page.
The Kansas Department of Revenue recognizes there are circumstances beyond your control that can result in late filing and payments. In such situations, waivers of late penalties may be granted upon request.Do I need to file a return if I didn't collect any sales tax in Kansas?
Yes! Once you've successfully registered for and been issued a Business Tax License, you are required to file at the completion of each assigned collection period regardless of whether any sales tax was collected. This is what is known as a "zero-tax filing".
Failure to submit a required zero-tax filing can result in penalties imposed on your business by the Kansas Department of Revenue so don't take this responsibility lightly.If I close my business, do I need to file a final sales tax return?
Yes! The Kansas Department of Revenue requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.Does the Kansas Department of Revenue offer a discount for filing on time?
At this time, the Kansas Department of Revenue does not offer sales tax filers a vendor discount.