In the wild and crazy world of consumption taxes, thresholds are a relatively straightforward concept. Phew!
But don’t confuse simple for insignificant; sales thresholds are one of the most important parts of tax policy. They determine whether you must register and charge tax or not. Overlook a threshold, and you’ll inadvertently break the law. Plus your business will have to fork over all the sales tax that you forgot to collect from your customers.
Here’s everything you need to know about how tax registration thresholds work.
(And if you need a quick refresher on various consumption taxes, check out our explanation of VAT, GST, and sales tax.)
Source Quaderno
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