What is sales and use tax in the state of Illinois?
Seller's permit in the state of Illinois is a combination of multiple taxes.
- Occupation-Occupation tax imposes on the sellers sell taxable tangible items or provide taxable services to the customers.
- Use- Use tax applies to the purchases bought from the out of state vendors to protect an unfair competition.
How to apply for a new Illinois Sales and Use Tax or renewal?
- Sales and use tax license for the state of Illinois can be applied online on My Tax Illinois and the state usually issues a sales tax number instantly after submitting the sales and use tax application successfully.
- The Illinois revenue department will automatically renew your sales and use tax license as long as you are filing sales and use tax returns on time with the payment due. You may have to contact to the Illinois Revenue to renew your license if you have defaulted.
Tips to handle Sales and Use Tax
- Form RUT-25 must be submitted by a person or a legal entity purchased an item from an out of state vendor.
- A certificate of registration is obtained to start business in the state of Illinois and a resale certificate is used to resell the items.
- A resale certificate must be applied to avoid paying sales and use tax, if you are selling items as a reseller and not a retailer.
- All retailers must collect sales tax on internet sales or directly from the location as long as items and services are delivered to the Illinois consumers.
- Illinois residents are responsible to pay use tax to the Illinois Revenue Department directly.
- Shipping and handling fee charged to the customers is taxable to the extent that it exceeds the actual costs.
- You must cancel your Illinois certificate of registration in order to close your account along with the final return and payment due.
- You can login Illinois Department of Revenue account to print a copy of your sales tax certificate, and it is located under the "Letters" tab.
Due dates schedule to file sales and use tax Illinois
You can file sales and use tax returns electronically at the Illinois Department of Revenue website.
- Monthly filings are due on the 20th of the following month you had collected sales tax from your customers.
- Quarterly filers are due on the 20th of the following month you had collected sales tax from your customers.
- Annually filers are required to pay on or before January 20.
If the due date falls on the holiday, you can file it next working day.
