Who Pays General Excise Tax in Hawaii?

Businesses in Hawaii are subject to the general excise tax (GET) as payment for the right to do operations there. It is a tax on all commercial operations, including the sales of tangible products and services, rather than a sales tax. Currently, the GET rate is fixed at 4% for the majority of firms, with a higher rate of 0.5% for those engaged in specific industries like manufacturing, wholesaling, or producing or selling gas or electricity.

So who covers Hawaii’s GET? Everyone, is the simple solution. The GET is paid for by businesses and subsequently passed on to consumers in the form of higher prices, in contrast to other jurisdictions where sales tax is paid by customers at the point of sale. As a result, even if you don’t own a business, you must pay GET each time you purchase products or services in Hawaii. You can revoke your GET license in Hawaii if you own a business there by sending a written request to the Hawaii Department of Taxation. You must include the name of your company, your license number, and a justification for the license cancellation. If your license is revoked, you are no longer required to submit GET returns or make GET payments. Similar to the GET, excise duty is a tax on particular items like alcohol, tobacco, and gasoline. Excise duty exclusively pertains to particular products, as opposed to the GET, which is a tax on all commercial operations. The manufacturer or importer of the product often pays excise duty, which has different rates depending on the product.

Businesses in Hawaii may pay their GET using Form N-200V, a payment voucher. It should be submitted concurrently with the GET return and is used to submit GET payments for a specific filing period. On the website of the Hawaii Department of Taxation, the form can be downloaded.

If you require additional Hawaii tax forms, you can get them by going to the Hawaii Department of Taxation website or by getting in touch with their offices. A complete list of all Hawaii tax forms, including those for income tax, property tax, and general excise tax, can be found on the website.

In conclusion, the general excise tax in Hawaii is a levy on all commercial operations, and consumers ultimately pay it through higher prices. Business owners who wish to revoke their GET licenses should send a written request to the Hawaii Department of Taxation. Excise duty is a tax on particular goods that is typically borne by the importer or maker of the goods. Businesses in Hawaii can get Form N-200V, a payment voucher, as well as other tax documents on the website or in-person at the offices of the Hawaii Department of Taxation.