With the exception of cable television, satellite relay of distribution of video or radio transmissions, which are taxed at 10 percent regardless of the commercial or non-commercial designation of the end-user, the gross receipts tax rate for the remaining industries is 10 percent (non-commercial) and 11 percent (commercial). The returns must be filed on or before the 20th day or each calendar month for the preceding calendar month with the Office of Tax and Revenue, PO Box 556, Excise Taxes, Washington, DC 20044-0556.Īs a result of the baseball stadium legislation, commercial gross receipts (sales to business entities) are taxed at a higher rate than non-commercial gross receipts (sales to non-business entities). Natural or artificial gas by non-public utility person Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding.The gross receipts tax is a tax imposed upon the gross revenue received by the following industries for services and/or deliveries to a District of Columbia address (commercial and non-commercial):Ĭable television, satellite relay of distribution of video or radio transmissions The IRS defines “gross receipts” as “The total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.” The federal government uses “Gross sales” to define income based on the total sales price of your reported inventory sold.Ī gross receipts tax is a tax applied to a company’s gross sales, without deductions for a firm’s business expenses, like costs of goods sold and compensation. What are the Differences between Gross Sales and Gross Receipts?
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