Monitor Use Tax Exposure and Register for Use Tax

Find where your purchases create use tax exposure and register in the states that require it. Use this after you have uploaded purchase transactions.

Time required: about 5 minutes to review, longer if you register

You will need: processed purchase transactions, use tax enabled for your organization, and a Premium plan

Steps to Monitor Use Tax Exposure and Register for Use Tax

1. Open Monitoring.
   Use tax exposure appears alongside sales tax with its own Tax Type.

2. On the Exposed tab, apply a filter and set Tax Type to Use Tax.
   Select use tax to isolate use tax exposure. In states that combine sales and use tax, exposure appears as a combined entry.

3. Review the exposed state/s.
   Open the state to see the transactions behind the exposure, including tax your vendors already charged.
   

4. Register where required. Use the Register action, the same flow you use for sales tax. In Registrations, the Tax Type field distinguishes sales tax, use tax, and combined accounts in the same state.

How to Confirm it worked

The registration should appear in Registrations tab with the correct Tax Type. In a state that requires separate accounts, your sales tax and use tax registrations appear side by side, each labeled by Tax Type.

Things to Know

• In combined states, Kintsugi upgrades an existing sales tax registration to a sales and use tax registration when use tax exposure appears, rather than creating a second account. The reverse also applies: a use-tax-only registration is retired and replaced by a combined registration when sales tax nexus develops

• Local-level use tax exposure is not generated in Missouri, Colorado home-rule jurisdictions, or Alaska. Exposure there is state level only

• Use tax registration is available to Premium organizations enabled for use tax

FAQs

Q: Can use tax and sales tax registrations coexist in one state?

A: Yes, where the state requires separate accounts. Both registrations appear in Registrations and are labeled by Tax Type. Where the state uses one combined account, Kintsugi maintains a single sales and use tax registration.

Q: Why does a state show combined exposure instead of a separate use tax entry?

A: That state reports sales and use tax together, so Kintsugi flags a combined exposure and files one return.

Need Help?

For further concerns, we're always here to help. If you can't find the answer you're looking for, just reach out to us using the chat in the bottom right corner of your screen.