If you are a business owner in Illinois who sells goods or services to consumers, then you have to submit state sales tax. You can pay this sales tax online through the MyTax Illinois, tax web portal for the Illinois Department’s revenue. As an Illinois resident, if you buy goods or services from a vendor outside the state, who do not collect sales taxes (like internet purchases), you will also have to pay state sales tax. In most cases, you can also pay this sales tax online through the MyTax Illinois website.
Paying Sales Tax as a Seller
Register your business with MyTax Illinois. If you have started a business that sells goods or services, you must register with the revenue of the Illinois Department before operating a business in the state.
You can register myTax electronically on Illinois. Go to http://mytax.illipedia.gov/_/ and click on the “Business” tab to get started.
If you register online, your registration process will take only a day or two.
Complete Form REG-1 If you prefer, you can complete the paper registration form instead of registering online. The form can be downloaded at http://www.revenue.state.il.us/TaxForms/Reg/REG-1.pdf.
In addition to the main app, you may have to complete an additional schedule based on the type of business you do. For example, if you sell alcohol or tobacco, then you have to complete an additional schedule for those businesses.
Once completed, mail your application to the Central Registration Division, Illinois Department of Revenue, PO Box 19030, Springfield, IL 62794-9030. If you mail a paper form, then allow 6 to 8 weeks for processing.
Get your registration package. After processing your registration application, you will get a certificate of registration and taxpayer ID. This package will be sent to your address at the address you listed.
Your certificate should be displayed in a prominent place in your business. You must have this certificate before placing any sales or purchases or before placing any employee.
File Form ST-1 when payable. Use this form to report to the Illinois Department of Revenue, which is the amount you have covered by the form, and the amount of sales tax you collect. You can file this form through MyTax Illinois.
When you register your business, the revenue department will determine how often you should file a sales tax return. Depending on the volume of your business, you will need to file monthly, quarterly or annually.
When you start trading for the first time, the revenue department can adjust the rate on which you have to file your return on the basis of your sales volume. The initial rate will be determined based on the average sales of Illinois businesses like yours.
Submit your payment. In Illinois state law, businesses are required to pay sales tax using Electronic Funds Transfer (EFT) if their annual tax liability is $ 20,000 or more. Most businesses use this method to deposit payments.
If your annual tax liability is less than $ 20,000, then you also have the option of matching your payments to the Illinois Department’s Revenue.
To make an EFT payment, you must provide an account and route number for your business bank account. Generally, it is a good idea to keep sales tax apart from your business’s operating account.
Paying Sales Tax as a Buyer
Determine when and when are outstanding. If you buy a tangible personal property from an outside retailer who does not deposit sales tax from the state of Illinois, then you are responsible for paying this tax yourself. Generally, you can pay all sales taxes at the end of each year. However, if you pay $ 600 or more, you will have to pay by the end of the month in which the purchase has been made.
Illinois State sales tax is 6.25% for general business. Therefore, if you earn $ 9,600 or more in purchases each year, you will have to pay sales tax before the end of the month in which you made each purchase. Otherwise, you can wait for the regular annual tax deadlines.
Sign up for MyTax Illinois. If you do not already have an account with MyTax Illinois, then install an account so that you can pay your Illinois sales tax online. Visit http://mytax.illipedia.gov/_/ and click “Sign up now!” Click on switch.
After providing information to identify yourself, you will create a username and password to log in to the site.
Full form ST-44 Once you log in to your account, click on the “People” tab and choose “File a Use Tax Return” from the presented options. Collect information about your purchase before filling out the form.
If you are depositing a monthly sales tax, enter the exact date that the purchase was made. If you are submitting forms for the year’s purchase, you only have to enter the year.
If you start filling it on MyTax Illinois, before you want to see it, you can download the form at http://tax.illipedia.gov/TaxForms/Sales/ST-44.pdf. Before entering online statistics, you can use this form as a worksheet to get your math.
Submit your payment. After clicking on the button to submit your form, you can choose your payment method and enter the appropriate payment information. The Illinois Department accepts electronic credit along with the revenue credit or debit card.
If you use electronic check, you must provide account and routing number for a check or savings account.
Once your payment is accepted, a confirmation page will be displayed which you can print for your records.