Form Pub. Ks-1525 - Kansas Sales & Use Tax For Contractors Subcontracotrs & Repairmen Page 26
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49Assume that a retailer has been notified by KDOR to
WHICH FILING – ST-16 OR ST-36?
begin filing prepaid monthly with the January 2012
return. The total tax collected for January is $15,000.
The total tax collected for the first 15 days of February
KDOR has two types of sales tax returns in electronic
is $7,500. Part I of the January return would be
format - ST-16 for single jurisdiction reporting and
completed as follows:
ST-36 for taxpayers that collect sales tax for more than
one jurisdiction. If all of your sales, deliveries, and labor
1.
Total Tax
$15,000
services are performed in ONE jurisdiction (city/county),
2.
Total Net Deduction
0
3.
Tax
15,000
and your filing status is not prepaid monthly, you may
4.
Estimated Tax Due for Next Month
7,500
report all sales using the ST-16 form type.
5.
Estimated Tax Due for Last Month
0
6.
Tax
22,500
Since the majority of contractors and contractor-
7.
Credit Memo
0
retailers must use form type ST-36, a ST-16 example is
8.
Subtotal
22,500
not included in this guide. Examples of that filing type
9.
Penalty
0
can be found in Pub. KS-1510, Kansas Sales and
10.
Interest
0
Compensating Use Tax.
11.
Total Amount Due
$22,500
Further assume that the total sales tax collections
PREPAID MONTHLY FILING FREQUENCY
for February is $14,000, and the total tax collected for
the first 15 days of March is $7,000. Part I of the
February return would be completed as follows:
Retailers’ whose annual sales tax liability exceeds
$32,000 are classified by law as having a prepaid
1.
Total Tax
$14,000
monthly filing status and must file a ST-36. Essentially,
2.
Total Net Deduction
0
the retailer is required to prepay its sales tax collections
3.
Tax
14,000
for the first 15 days of each month on or before the
4.
Estimated Tax Due for Next Month
7,000
5.
Estimated Tax Due for Last Month
7,500
25th of that same month.
6.
Tax
13,500
7.
Credit Memo
0
The law provides that a prepaid monthly filer will be
8.
Subtotal
13,500
in compliance if the amount of tax reported for the first
9.
Penalty
0
15 days of each month is either: 1) 90% of the actual
10.
Interest
0
amount of tax collected for the first 15 days of the
11.
Total Amount Due
$13,500
following month or, 2) 50% of the tax liability for the same
month of the previous year.
SAMPLE COMPLETED SALES TAX FILINGS
KDOR annually reviews the filing frequency of all
sales tax accounts. Those with annual sales tax liabilities
Beginning on the next page are sample completed
exceeding $32,000 are notified by mail that beginning
sales tax filings for contractors and for contractor-
January 1st of the coming year they will be classified as
retailers. The differences among them are defined by
prepaid monthly filers. DO NOT file as prepaid monthly
how the billing/invoicing is done for the jobs performed.
unless KDOR has notified you in writing to change
All of them illustrate how to properly report (electronically)
your filing frequency or, you initially registered with
sales and tax due on:
KDOR to file prepaid monthly.
• retail sales of tangible personal property,
Monthly to Prepaid Monthly Transition: Assume
• labor services (taxable, original construction
that a monthly filer has received a letter from KDOR
and exempt projects), and
that advises them to file prepaid monthly beginning
• contract or personal use of inventory
January 1, 2012. Follow these steps to make the
purchased for resale without tax.
transition from monthly to prepaid monthly:
Follow the example that corresponds to your business
1) File the December 2011 return (by January 25,
type and billing method.
2012) in the same manner as all previously filed
monthly returns - skipping lines 4 & 5 of Part I.
Sample #1 Contractor – Sales tax included in quoted price.
2) File the January 2012 return (not later than
Sample #2 Contractor – Contract price plus sales tax
February 25, 2013) reporting all of the sales tax
Sample #3 Contractor-Retailer – Sales tax self-assessed
collections for the month of January on line 1,
when materials removed from inventory.
Part I and all of the sales tax collections for the
first 15 days of February on line 4 of Part I.
Note that the examples provided are for
3) File the February 2012 return (not later than March
illustration purposes only. The sales tax rates used
25, 2012) reporting all of the sales tax collections
may no longer be the rates currently in effect but you
for February 2012 on line 1, Part I. Enter on line
can use these examples to assist you in filing your return
4, Part I the amount of sales tax collections for the
electronically. See page 35 or go to our web site at
first 15 days of March. Enter on line 5 of Part I, the
to determine the electronic filing option that
amount from Line 4, Part I of the January return.
is best for you.
26
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