Nebraska Administrative Code › Topic - REVENUE, DEPARTMENT OF › Title 316 - NEBRASKA DEPARTMENT OF REVENUE › Chapter 1 - SALES AND USE TAX REGULATIONS › Section 316-1-009 - ACCOUNTING METHODS

Current through June 17, 2024
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)