Most businesses starting in Hawaii selling a product or offering certain services will need to register for a General Excise Tax license. This is sometimes referred to as a seller’s permit, GET license, or GET permit. The GET is similar to a sales tax but is actually a privilege tax based on the gross income of most business activities in the State of Hawaii.
The General Excise Tax license is obtained through the Hawaii Department of Taxation when applying for a Hawaii Tax Identification Number.
Check out the rest of this guide to find out who needs a General Excise Tax license, what products and services are taxable, how to register for a permit, and reporting requirements.
Table of ContentsA business must register for a General Excise Tax license in the state of Hawaii to receive income from almost any business activity, including wholesaling, retailing, farming, performing services, construction contracting, rental of personal or real property, business interest income, and even royalties.
Additionally, a remote seller meeting one of the following scenarios will need to register:
The General Excise Tax License can be obtained by registering online through the Hawaii Business Express website or the Department of Commerce and Consumer Affairs Business Action Centers or by mailing Form BB-1.
Information needed to register includes:
When a business generates income, the business is charged the GET for the privilege of doing business in Hawaii. This tax can be passed on to the customer. The business sends the tax to the Hawaii Department of Taxation.
The rate that is charged varies depending on the address of the business if the purchase is made or shipped from a company located in the state. If the seller is based out of the state, the sales tax rate is based on the buyer’s address.
In addition to the statewide tax, there may be an additional county surcharge tax. To find the sales tax for your location, see the GET surcharge tax rate table from the Hawaii Department of Taxation.
The Department of Taxation will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, semiannually, or annually. Generally, a business collecting over $4,000 in GET annually will file Form G-45 monthly.
Filings are due the 20 th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.
Even if the business had no sales during the reporting period, a filing indicating no sales is still required.
The state fee for a General Excise Tax License is a one-time cost of $20.
Expect 3-5 business days to receive a Hawaii Tax Identification Number and General Excise Tax license when registering online or 3-4 weeks when applying by mail.
After receiving the license, it must be displayed at the place of business. If there are multiple locations, a license will be needed for each location (use Form G-50 – General Excise Branch License).
The General Excise Tax license is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Taxation.
No – A business license and a sales tax permit serve different purposes and are not the same.
A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.
Generally, businesses require both a license and a permit to operate legally and handle taxes correctly.
A business can purchase items to resell without paying the General Excise Tax. The tax liability is passed from the distributor to the retailer, who will then charge GE tax to the end-user of the item.
Wholesalers and distributors will require a GET number and a completed Hawaii Resale Certificate (also referred to as a wholesale license, reseller’s permit, or sales tax exemption certificate)to document the items being purchased for resale.
If you have questions about the General Excise Tax license, the Hawaii Department of Taxation has a guide to sales taxes in Hawaii. The main phone number for Hawaii Taxpayer Services is 800-222-3229, or you can visit or call one of the district offices.
OAHU DISTRICT OFFICE
Princess Ruth Keelikolani Building
Punchbowl Street
Honolulu, HI 96809-0259
Telephone: 808-587-1611
Email: Taxpayer.Services@hawaii.gov
MAUI DISTRICT OFFICE
State Office Building Molokai
54 S. High Street, #208
Wailuku, HI 96793-2198
Telephone: 808-984-8500
Email: Tax.Maui.Office@hawaii.gov
HAWAII DISTRICT OFFICE
State Office Building
75 Aupuni Street, #101
Hilo, HI 96720-4245
Telephone: 808-974-6321
Email: Tax.Hilo.Office@hawaii.gov
KAUAI DISTRICT OFFICE
State Office Building
Eiwa Street, #105
Lihue, HI 96766-1889
Telephone: 808-274-3456
Email: Tax.Kauai.Office@hawaii.gov