Hawaii General Excise Tax License Application

A business in Hawaii needs to be registered for the state’s General Excise Tax (GET). This is an added tax on gross income from wholesale sales, services, rents, and other activities. It takes the place of a state sales tax and is one of Hawaii’s biggest sources of revenue. It also helps fund public projects and support local government. While most companies will need to register for GET, not all do. This is because the United States Supreme Court overruled the physical presence requirement in June 2018, and states can now tax retailers based on virtual and economic connections to their territory. This is called economic nexus.

In addition to registering for GET, businesses must keep up with remitting taxes and filing timely returns. The Department of Commerce and Consumer Affairs’ Business Action Centers offer assistance with small business registration. Those who sell products online should make sure their point-of-sale system is configured to collect GET and that they are calculating the correct rate for each product. They should also consider whether they will pass the GET on to customers and keep records of these transactions.

The state’s tax collection agency can use a number of enforcement actions to collect unpaid GET, including wage garnishment and tax liens. The agency can also impose civil penalties for failing to comply with GET laws.

How to Apply for General Excise Tax License in Hawaii?

Applying for a General Excise Tax (GET) license in Hawaii is straightforward. Here’s a breakdown of the steps:

1. Gather Required Documents: You won’t need a lot of documents. Ensure you have basic business information on hand, such as your name, address, and type of business entity.
2. Register Online: The Hawaii Department of Taxation (DOTAX) offers a convenient online application system called Hawaii Tax Online [Hawaii Tax Online]. This is the recommended way to register.
3. Complete Form BB-1: As part of the online registration, you’ll need to fill out Form BB-1, which is the State of Hawaii Basic Business Application. The form itself provides guidance on how to complete it.
4. Pay the Registration Fee: A one-time $20 registration fee is associated with the application. You can pay electronically through Hawaii Tax Online.
5. Submit Your Application: Once you’ve completed the form and paid the fee, submit your application electronically.
6. Receive Your GET License: Upon approval, you’ll receive your GET license in the mail. Processing times can vary depending on whether you applied online, by mail, or in person. Online applications are generally the fastest.