FAQS: GROSS RECEIPTS TAX
Q. What is the Delaware Gross Receipts Tax?
A. Delaware's Gross Receipts Tax is a tax on the total gross revenues of a business, regardless of their source. This tax is levied on the seller of goods or services, rather than on the consumer. Gross receipts tax rates currently range from .096% to 1.92%, depending on the business activity.
Q. Who is required to pay Delaware's Gross Receipts Tax?
A. When you engage in business in the State of Delaware, you may be required to pay Gross Receipts Tax. This tax is paid by the seller of goods (tangible or otherwise) or the provider of services in the state. There are no deductions for the cost of goods or property sold, material or labor costs, interest expense, discounts paid, delivery costs, state or federal taxes, or any other expenses allowed.
Q. Are there any Gross Receipts Tax Exclusions available?
A. When determining the gross receipts tax due, most businesses are entitled to an exclusion, which varies depending on the business activity conducted. These exclusions, provided monthly or quarterly, generally start at $80,000 per month. To determine the exclusion for a specific business activity in the State of Delaware, please visit the Tax Tip for your business type.
Q. When are the gross receipts tax returns due?
A. Delaware Gross Receipts tax returns and payments are due either monthly or quarterly, depending on a business’ total gross receipts. The Division of Revenue uses a “lookback period” to determine whether a business is a monthly or quarterly filer.
If you are set-up as a monthly filer, then your gross receipts tax is due on or before the 20th day of each month with respect to the aggregate gross receipts for the immediately preceding month.
If you are set-up as a quarterly filer, then your gross receipts tax is due on or before the last day of the first month following the close of the quarter.
Please note that all new businesses are automatically set-up as quarterly gross receipts tax filers.
Q. What are the penalties for not paying the tax?
A. Failure to file and/or pay gross receipts taxes in a timely manner, generally payable on or before the 20th day of each month for the immediately preceding month, may subject the tax due to additional penalty and interest charges. The Failure to Timely File penalty is 5% of the tax required to be paid. The Failure to Timely Pay penalty is 1% of the tax required to be paid. Interest is due at the rate of 0.5% per month.
Q. Am I required to file gross receipts tax coupons electronically?
A. You may now file your gross receipts tax returns online and make a payment via credit/debit card or by Automated Clearing House (ACH) transaction from your checking account by visiting www.state.de.us/revenue and clicking the link “File Gross Receipts Tax”. You will need either your Federal Employer Identification Number or Social Security Number and your Business License Number to access the system.
Q. How can I obtain gross receipts tax coupons?
A. In order to reduce printing costs, Delaware gross receipt coupon books will no longer be mailed. Coupons are now available online by visiting www.revenue.delaware.gov and clicking the link “Print Business Tax Forms." If you do not have access to the internet, you may call (302) 577-8780 or e-mail grt@state.de.us to obtain forms.
Q. What is the mailing address for filing gross receipts tax coupons?
A. You may send your gross receipts tax coupons to the following address: Delaware Division of Revenue, Attn: Gross Receipts Tax Dept., P.O. Box 2340, Wilmington, DE 19899-2340.
Q. How do I file an amended gross receipts tax coupon?
A. To amend Delaware gross receipts tax or license/excise tax returns for ONE TAX PERIOD ONLY, you must submit the applicable Amended GR Return to correct any previously filed monthly or quarterly gross receipts or License/Excise tax return.
Please note that if your amended return pertains to more than one tax period or includes tax periods other than the current calendar year, you must use the Claim for Revision Form.
Q. How do I submit a Request for Change for my gross receipts tax coupons?
A. A Request for Change form allows you to make certain corrections or changes to your gross receipts tax coupons, such as changes to your name or address. The form is also used to notify the Division of Revenue if you have gone out of business. You may either download a Request for Change form for your business type or you may call our gross receipts tax department at (302) 577-8780 to request a change.
Please note that this form does not allow a business to change its account number or the way the business is formed (i.e., sole proprietorship, corporation, limited liability company). For this, you would need a new business license application.
