009.01 Gross sales must be reported in
accordance with the method of accounting regularly employed in keeping the
books of the particular taxpayer. Retailers may use either the cash basis,
accrual basis, or any other generally recognized accounting basis which
correctly reflects the operation of the business. When a basis of accounting
has been adopted for reporting sales tax, the retailer may not change that
basis of accounting without prior permission from the Department of
Revenue.
009.02 Retailers
maintaining their regular books and records on the cash basis shall make
returns on the basis of cash received during the period, provided this basis
clearly reflects the operation of the business.
009.03 Retailers maintaining their regular
books and records on the accrual basis, or any other basis of accounting
recognized under generally accepted accounting principles, shall make returns
on that basis and shall report all sales recorded during the period on the
corresponding Nebraska and Local Sales and Use Tax Return, Form 10.
009.04 As is explained in
Reg-1-016,
Changes in Rate of Tax, the basis on which returns are required to be made
shall also serve as the basis for determining the rate at which the tax is to
be collected by the retailer from the purchaser.
009.05 Retailers maintaining their books and
records on the accrual basis, may elect to defer remittance of sales tax not
yet collected on credit, conditional, and installment sales. If such election
is made, it shall be pursuant to the following conditions:
009.05A The election must be submitted in
writing to the Nebraska Department of Revenue prior to the retailer's change in
reporting,
009.05B Such election
shall become effective the first day of the month following the month the
notice of election is received by the Department; provided, such notice is
postmarked no later than the 15th day of the month. Elections postmarked after
the 15th day of the month shall become effective the first day of the next
succeeding month (i.e., election notice postmarked September 10, effective date
of election, October 1; election notice postmarked September 17, effective date
of election, November 1.)
009.05C
The election will be acknowledged by the Department; such acknowledgment is to
be maintained with the retailer's records.
009.05D This option is available only to
retailers who finance their own sales or discount them to a qualified
subsidiary corporation.
009.05D(1) Retailers
who accept bank or similar credit cards or who discount their credit sales to a
third party, may not defer the sales tax remittance on these sales. However,
retailers who both carry their own credit and discount some credit sales to a
third party, may defer the sales tax remittance on that portion of credit sales
carried by the retailer.
009.05D(2)
Retailers who discount their credit sales to a subsidiary corporation may elect
to defer the sales tax until the subsidiary receives payment on the account. If
the subsidiary corporation does not obtain a Nebraska sales tax permit, the
retailer must obtain a surety bond in favor of the State of Nebraska in an
amount not less than two (2) times the amount of sales tax payable on
outstanding Nebraska accounts receivable held by the subsidiary as of the end
of the prior calendar year. The Nebraska Department of Revenue will provide the
necessary information and bond conditions upon written request. Each retailer
maintaining a surety bond, shall review the amount of each bond at the close of
each calendar year, adjusting same to reflect the minimum bond
requirement.
009.05D(3) Failure of
the subsidiary to maintain a sales tax permit, or of the retailer to maintain a
bond in the required amount shall result in all sales tax not previously
remitted on recorded sales becoming due and payable. The tax must be paid by
the next required sales tax return filing date.
009.05E Once in effect, this election shall
remain in force for a period of not less than one (1) year from the date the
election becomes effective.
009.05F
Retailers who wish to discontinue remitting under this option and remit sales
tax in accordance with paragraph 009.03, are required to notify the Department.
Payment of all deferred sales taxes will be remitted on their next required
sales tax filing date corresponding to the tax period within which the notice
is received by the Department. Should a retailer discontinue business while
under this option, all deferred sales taxes must be remitted on its final sales
tax return.
009.05G For retailers
deferring sales tax remittances, the amount of tax due on a sale is determined
by the sales tax rate in effect at the time the sale is recorded.
009.05H Retailers deferring sales tax
remittances under this option do not qualify for the bad debt deduction as
sales tax is remitted after the receipt of payment. (
Reg-1-028, Bad
Debts)
