Hawaii GET & TAT Guide: What Every Hawaii Business Owner Should Know?
Hawaii GET & TAT Guide: What Every Hawaii Business Owner Should Know?
Running a business in Hawaii comes with unique tax responsibilities that many new business owners don't expect. Two of the most important are the General Excise Tax (GET) and, for certain businesses, the Transient Accommodations Tax (TAT).
Understanding how these taxes work—and keeping accurate bookkeeping records throughout the year—can help you avoid penalties, simplify filing, and make tax season much less stressful.
What is Hawaii General Excise Tax (GET)?
Unlike a traditional sales tax, Hawaii's General Excise Tax is a tax imposed on businesses for the privilege of doing business in Hawaii. Because of this, nearly every business operating in Hawaii may be required to obtain a GET license and file periodic tax returns.
Businesses commonly subject to GET include:
Sole proprietors
LLCs
Corporations
Contractors
Service providers
Retail businesses
Professional services
Proper bookkeeping ensures your taxable income is tracked accurately before filing.
What is Transient Accommodations Tax (TAT)?
If your business rents out short-term accommodations such as vacation rentals, condos, or other lodging, you may also be responsible for Hawaii's Transient Accommodations Tax (TAT).
Keeping lodging income separate from other business income makes TAT reporting much easier and helps reduce filing errors.
Why Bookkeeping Matters?
Many businesses wait until tax season to organize their records. Unfortunately, this often leads to:
Missing transactions
Incorrect tax calculations
Duplicate expenses
Late filings
Costly penalties
Maintaining your books monthly allows you to prepare accurate reports and stay compliant throughout the year.
Common GET Bookkeeping Mistakes
Some of the most common mistakes include:
Mixing personal and business expenses
Not reconciling bank accounts monthly
Forgetting to track cash sales
Misclassifying taxable income
Waiting until filing deadlines to organize records
These issues can create unnecessary stress and increase the chance of filing errors.
Best Practices
To stay organized:
Reconcile your bank accounts every month.
Categorize income and expenses consistently.
Save receipts digitally.
Review your financial reports regularly.
Work with a qualified bookkeeping professional familiar with Hawaii tax requirements.
Need Help?
At Carmela Krause Bookkeeping, LLC, we help Hawaii businesses maintain organized books, prepare accurate financial records, and stay ready for GET and TAT filing throughout the year.
Disclaimer: This article is provided for educational and informational purposes only and should not be considered legal, tax, or accounting advice. Tax laws and filing requirements may change, and every business's situation is unique. Always consult a qualified tax professional or CPA regarding your specific circumstances. For the most current Hawaii General Excise Tax (GET) and Transient Accommodations Tax (TAT) information, forms, and filing requirements, visit the official Hawaii Department of Taxation website at tax.hawaii.gov or review the official General Excise Tax (GET) Information page at General Excise Tax (GET) Information.