DAVO Sales Tax Frequently Asked Questions

1. WHO USES DAVO?

If you are a brick and mortar business and you sell things, chances are you have to collect and pay sales tax.  DAVO can do it for you.

2. WHY SHOULD I USE DAVO,I HAVE A BOOKKEEPER?

If you ever paid your sales tax late and paid a penalty or worry about having enough money to pay your sales tax you should be using DAVO.  DAVO is like an insurance policy against ever missing a sales tax payment. We GUARANTEE your sales tax will be filed and paid on-time and in-full.  Does your bookkeeper give you that guarantee?

3. WHAT DOES DAVO’s GUARANTEE MEAN?

DAVO GUARANTEE* means your sales tax will always be filed and paid on-time and in-full, provided DAVO has collected all of the sales tax funds due to the State for the filing period and that your filing credentials are in working order.  See DAVO Sales Tax Guarantee in Section 7 of our Terms of Use. DAVO stands behind our service and if we file and pay your sales tax late, we will pay the fines and penalties.

4. HOW DOES DAVO WORK?

DAVO uses sales data from your POS to determine the exact amount of sales tax you collect every day.  DAVO transfers the sales tax you collect from your bank account to DAVO’s tax holding account daily. This ensures sales tax is always set aside.  When your sales tax is due, DAVO files and pays it for you.

5. WHERE DOES MY SALES TAX GO?

DAVO transfers sales tax revenue from your bank account to DAVO’s secure tax holding account.  This account is bonded and insured. Once we file your sales tax return, your sales tax funds are paid directly to the State, on-time and in-full.

6. I HAVE TAXABLE AND NON-TAXABLE SALES, HOW DOES DAVO KNOW THE DIFFERENCE?

When you set-up your POS and enter the items you will sell, you assign either a tax rate or no tax to each item (taxable or non-taxable). Your POS determines the amount of sales tax on each sale and DAVO uses that data to know exactly how much sales tax to set aside.

7. DOES DAVO ONLY COLLECT SALES TAX ON CREDIT CARD SALES?

No.  DAVO collects sales tax on total sales including cash, credit, debit, gift card, check, etc.

8. CAN YOU TELL ME WHAT THE TAX RATE IS FOR ______________?

No. We do not know tax rates and we do not recommend searching for them online.  The best way to determine your tax rate is to get it from your State Department of Revenue.  Here is a list of phone numbers/websites for every state.

9. HOW DOES DAVO ACCOUNT FOR REFUNDS?

Refunds are calculated in the POS and refunded sales tax is subtracted from your total daily sales tax collected.

10. I USE 3RD PARTY ORDER APPS LIKE GRUBHUB AND UBEREATS, HOW DOES DAVO ACCOUNT FOR THESE SALES?

Orders from 3rd Party apps should be entered into your POS as they are received.  Read more about how to manage 3rd party apps HERE. 

11. WHAT POS SYSTEMS DOES DAVO WORK WITH?

Currently, DAVO is available on Clover, Square, Poynt, Revel, Breadcrumb, and Quickbooks Online.  If your POS has the ability to dump your sales data into QBO daily, you may be able to use DAVO. Please contact DAVO directly for further questions.

12. CAN DAVO DETERMINE THE TAX RATES AND FILE SALES TAX IN MULTIPLE STATES OR TAX JURISDICTIONS?

No.  DAVO is not intended for e-commerce and does not lookup sales tax rates or file in multiple jurisdictions/states for a single business.  

13. I MOVE AROUND IN A FOOD TRUCK, CAN DAVO DO MY SALES TAX?

DAVO can collect set aside your sales tax funds daily, but we cannot file for you because we do not know what tax jurisdictions your truck is moving between.  You would be responsible for changing the tax rate in your POS every time you change location. DAVO would know how much sales tax you collected, but not where you collected it.  We would refund the sales tax money we collect to you each month and you would have to file and pay the state.

14. DOES DAVO DO FEDERAL TAXES TOO?

No.  There is no federal sales tax, only state sales tax.  You may be confusing sales tax with payroll taxes.

15. CAN DAVO FILE TAX RETURNS FOR PREVIOUS TAX PERIODS OR FILE AMENDED RETURNS?

No.  DAVO is not an accounting firm.  We work with sales data from your POS to collect, file and pay sales tax for current tax filing periods.

16. I’M BEHIND ON SALES TAX, CAN DAVO HELP ME?

Yes. The DAVO Sweep & Save app can put aside a dollar amount or additional percentage of your daily sales every day for back sales tax owed.  A member of our support team can help you with this.

Yes, I want to make my sales tax hassles go away

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Yes, I want to make my sales tax hassles go away

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