You must keep records of all the purchases and sales that your business makes. Your records must show that you properly collected, reported, and paid or forwarded taxes to Idaho.
Records you must keep
- Normal books of account
- Documents that support entries in the books of account
Examples
- Bills
- Receipts
- Invoices
- Cash register tapes
- Credits granted
- Job or work orders
- Contracts
- All schedules or working papers used to prepare your sales tax returns
- Tax returns and payments
- Copies of sales tax resale or exemption certificates (Form ST-101)
Note: Keep a buyer’s exemption certificate for as long as you do business with that buyer, plus four years. We’ll bill you for tax due if you don’t have completed exemption certificates for buyers you sell exempt to. It’s always a good idea to make sure your customer’s exemption certificate is still valid and up-to-date.
What your records must show
- Gross receipts from sales and services made in Idaho — even sales that you or your customer might consider exempt from tax. You must also keep records that prove where delivery took place when you deliver the product or service somewhere other than your place of business.
- The identity of customers claiming an exemption, the type of exemption, and what you sold them exempt.
- All deductions claimed in filing returns.
- The total purchase price of anything bought for sale, rental, lease, or your own use.
- The amount of sales tax collected from your customer or that you paid to a vendor.
You must keep all sales and use tax records for four years. You should keep them for seven years if you don’t file returns.