Kentucky Sales Tax Guide

A step-by-step guide to understanding Kentucky sales tax rules.


Collecting, filing, and remitting sales tax in Kentucky can be complicated for small business owners and online sellers. Our guide to Kentucky sales tax will help you establish a foundation for sales tax compliance and explain the ins and outs of registration, collecting tax, and filing ongoing tax returns with the Kentucky Department of Revenue.

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Table of Contents

An Overview of Kentucky Sales Tax

Understanding where, when, and how to collect Kentucky sales tax is no easy task. Whether you're collecting tax dollars at the point-of-sale or collecting Kentucky internet sales tax, our guide will break down the sales tax compliance process into focused, easy to understand chapters.

Kentucky Sales Tax Nexus

Understanding whether you need to collect, file, and remit Kentucky sales tax depends on a concept known as nexus. In this chapter, we'll take a look at situations that may trigger in Kentucky such as storing inventory in the state, hiring state residents, and click-through nexus.

Registering to Collect Kentucky Sales Tax

You'll want to get started establishing Kentucky sales tax compliance by understanding how to get your business registered for the necessary sales tax permit. We'll walk you through the process and help you understand when is the best time to get your business registered in Kentucky.

Collecting Sales Tax in Kentucky

After you've registered your business with the Kentucky Department of Revenue, you're ready to begin collecting sales tax. We'll review topics such as Kentucky sales tax exemptions, sales tax holidays, and determining state and local sales tax rates.

Filing Kentucky Sales Tax Returns

Now that you're business is registered with the Kentucky Department of Revenue and collecting sales tax, you'll need to file tax returns in an ongoing basis. We'll help you gain a deep understand of the process of filing sales tax returns. Topic covered include filing frequencies, filing on behalf of a client, and what happens if you file late.

Kentucky Sales Tax Filing Due Dates

Every business that registers to collect Kentucky sales tax will be assigned a filing frequency. In this chapter, we'll take a look at the filing frequencies and associated due dates supported by the Kentucky Department of Revenue.

Late Filing Penalties, Fines & Interest

We know, mistakes happen and, from time to time, sales tax filing deadlines are missed. In this chapter, we'll take a look at what penalties you may be required to pay should you miss your assigned Kentucky sales tax filing date. We'll also consider interest charges for late sales tax payments.

Sales Tax on Kentucky Shipping & Handling

The rise of the internet economy has made it possible for buyers around the world to order your products. Did you know shipping and handling may be taxable? In this chapter we'll cover sales tax on shipping and handling in Kentucky. You'll want to pay attention here because there are some important details pertaining to invoicing you'll want to understand.