Kōkua Financial
General excise tax (GET) applies to the gross receipts of almost every business in Hawaiʻi: sales of goods, services, commissions and rents. Unlike a sales tax, GET is a tax on the business itself, although most businesses pass it on to their customers. Because it's charged on gross receipts, it's owed whether or not the business made a profit.
The rules are simple once you know them. Missing them is what gets expensive.
How often you file
Periodic GET returns (Form G-45) are due by the 20th day of the month after each filing period. How often you file depends on how much GET you owe in a year:
| Annual GET liability | You may file | Periodic return due |
|---|---|---|
| More than $4,000 | Monthly | 20th of the following month |
| $4,000 or less | Quarterly | 20th of the month after the quarter |
| $2,000 or less | Semiannually | 20th of the month after the half-year |
Businesses with $100 or less of GET for the year don't have to file periodic returns at all.
The annual return
Every GET account also files an annual summary and reconciliation return (Form G-49). It's due by the 20th day of the fourth month after your tax year ends, which is April 20 for a calendar-year business. The annual return reconciles what you reported during the year with your actual gross receipts, so errors in your periodic returns surface here.
TAT for vacation rentals and lodging
If you rent rooms, homes or units to guests for stays of less than 180 days, you generally owe the state transient accommodations tax (TAT) as well as GET on the same rental income. TAT follows the same filing schedule: periodic returns by the 20th of the month after each period, and an annual return by the 20th day of the fourth month after year end. Each county also charges its own transient accommodations tax, filed separately with the county.
Three habits that keep GET painless
- Report from your books, not your bank deposits. Deposits mix in loans, transfers and refunds. Reconciled books give you true gross receipts and a return that matches your records.
- Set the tax aside as you collect it. Move the GET you bill or collect into a separate account each week, so the payment is never a surprise.
- Put the 20th on the calendar. Late returns and late payments carry penalties and interest. A monthly reminder a week ahead costs nothing.
How Kōkua Financial helps
We prepare and file GET and TAT returns from your reconciled books as part of our Small Business Fixed-Fee Package, typically $350 to $1,500 a month, along with bank reconciliations, bills and collections, payroll and a monthly report. Every return gets CPA review before it's filed.
Source: Hawaiʻi Department of Taxation, Outline of Hawaii Taxes. Rules change; confirm your own filing schedule with the Department of Taxation or your tax adviser.