The Gross Receipts Tax (GRT) is a levy imposed by the Delaware Division of Revenue on businesses operating in Delaware, based on their total gross revenues (receipts) from sales of goods or services within the state.
of its budget is earned from a gross receipts tax on businesses.
Delaware’s Gross Receipts Tax applies to all revenue from goods sold or services provided within the state. No deductions are allowed for expenses such as cost of goods sold, labor, interest, delivery charges, or discounts.
GRT rates vary by industry and business classification. Published guidance shows rates generally ranging from about 0.0945% to 1.9914%, depending on the type of business activity.
Many business types receive monthly or quarterly exclusion amounts, meaning a portion of their receipts is exempt before the tax applies. These exclusion levels differ by both industry and filing frequency.
Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.
The tax applies to businesses conducting activities in Delaware, whether selling goods or providing services. Out-of-state businesses may also be liable if they have a physical presence in Delaware, such as employees, inventory, offices, or warehouses. Remote sellers without physical nexus are generally not subject to GRT.
Late filings or payments can lead to penalties, including a 5% penalty per month for late returns and 0.5% monthly interest, plus additional charges for failure to pay.
Obtain a Delaware Business License by registering through the Delaware One Stop Portal, selecting your business activities, and paying the required fee. Once licensed, the Division of Revenue assigns your filing frequency, with most new businesses starting as quarterly filers.
Businesses do not collect GRT from their customers.
This is an internal business tax, not a sales tax.
No. GRT is not a sales tax and is never charged to customers. It is a tax paid directly by the business on its gross revenue from goods sold or services provided in Delaware.
No. Delaware does not allow deductions for labor, materials, shipping, interest, discounts, or any other costs. GRT is calculated solely on total gross receipts.
Only if it has physical nexus in Delaware - such as employees, inventory, a warehouse, or an office. Purely remote sellers with no physical presence in the state are generally not required to pay GRT.
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The Gross Receipts Tax (GRT) is a levy imposed by the Delaware Division of Revenue on businesses operating in Delaware, based on their total gross revenues (receipts) from sales of goods or services within the state.
of its budget is earned from a gross receipts tax on businesses.
Delaware’s Gross Receipts Tax applies to all revenue from goods sold or services provided within the state. No deductions are allowed for expenses such as cost of goods sold, labor, interest, delivery charges, or discounts.
GRT rates vary by industry and business classification. Published guidance shows rates generally ranging from about 0.0945% to 1.9914%, depending on the type of business activity.
Many business types receive monthly or quarterly exclusion amounts, meaning a portion of their receipts is exempt before the tax applies. These exclusion levels differ by both industry and filing frequency.
Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.
Businesses file their GRT returns either monthly or quarterly, depending on their total gross receipts. New businesses typically begin on a quarterly filing schedule.
Obtain a Delaware Business License by registering through the Delaware One Stop Portal, selecting your business activities, and paying the required fee. Once licensed, the Division of Revenue assigns your filing frequency, with most new businesses starting as quarterly filers.
Businesses do not collect GRT from their customers.
This is an internal business tax, not a sales tax.
No. GRT is not a sales tax and is never charged to customers. It is a tax paid directly by the business on its gross revenue from goods sold or services provided in Delaware.
No. Delaware does not allow deductions for labor, materials, shipping, interest, discounts, or any other costs. GRT is calculated solely on total gross receipts.
Only if it has physical nexus in Delaware - such as employees, inventory, a warehouse, or an office. Purely remote sellers with no physical presence in the state are generally not required to pay GRT.
How to Deregister for VAT and What to Consider First A drop in turnover, a change of business model, or the closure of a cross-border sales channel can all result in a company being registered for a tax it no longer needs to charge. Cancelling that registration is rarely as simple as writing to the […]
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VAT in the Events Industry: The Triggers That Catch Businesses Out Most event businesses think they have a VAT plan. What they actually have is a VAT filing plan. Those are not the same thing. Filing returns on time does not protect you if the underlying classification of your supplies is wrong. If admission […]
Branch vs Subsidiary: Why the Distinction Matters More Than You Think for VAT Reclaim Most multinationals know the difference between a branch and a subsidiary from a corporate law perspective. Fewer realise how dramatically that distinction affects their VAT position, and specifically, how much recoverable VAT they may be leaving on the table because of […]
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This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.
