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Quick answer
Kentucky sales tax is collected from customers on taxable sales and remitted to the state. It should be tracked separately from revenue in QuickBooks.
Registration context
Kentucky says new businesses or businesses starting new taxable activities register for tax accounts through the Kentucky Tax Registration Application, with online registration available through MyTaxes.ky.gov.
Frequently asked questions
Questions owners ask next.
Do I need to collect sales tax in Kentucky?
It depends on whether your products or services are taxable in Kentucky, and many services became taxable in recent years. Confirm your specific situation with the Kentucky Department of Revenue or a tax professional before deciding.
Is collected sales tax part of my revenue?
No. Sales tax you collect is held for the state and should be tracked as a liability in QuickBooks, not counted as income.
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Small Business Bookkeeping Co. can help review your QuickBooks sales tax setup so collected sales tax is tracked clearly and does not get mixed into normal revenue.
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