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View Full Version : WI reps(or any I guess) please clarify !!
taytan
10-25-2005, 11:30 AM
I am just trying to figure this out: I know our sales tax is 5.5% (Wisconsin)that is the easy part! How do you figure a customers total? Do you get the subtotal of the products then add the shipping/handling and then charge tax on that total? Do you then take any discounts off at the end? I want to know what the legal way to do it is!! Also....if you get your product from another state where the tax is say 6%....do you pass that on to the customer? I don't think you can -can you? What if you sell to someone from another state and their tax is lower then yours...what do you do then? Am I making any sense here?????? I just want to know what to do so I don't tick anybody off.....or get in trouble down the road!!!!!!! I (obviously!!) am just starting out and feel so stupid!!!!!
Thanks in advance to anyone who can clarify this for me!!
Thanks in advance to anyone who can clarify this for me!!
Soy Candle Gal
10-25-2005, 11:55 AM
Hi, Taytan! I am from WI. We can only use the county tax that you are selling the product in.
You are selling a "thing" - you and customer are inBrown county during the transaction then use Brown county tax - 5.5% (does not matter that you paid 6% elsewhere). It goes by where the physical transaction takes place (or over the internet - the county the customerlives in)
Example on a 20$ item with a 1$ discount.
Subtract right away so now itemshould be $19
Add your shipping charge here - $3.00
Subtotal should be 22.00
Add 5.5% tax 1.21
Total should be 23.21
shipping is taxed in WI
Hope thisillustration helps.
Good luck - any questions feel free to pm me.
You are selling a "thing" - you and customer are inBrown county during the transaction then use Brown county tax - 5.5% (does not matter that you paid 6% elsewhere). It goes by where the physical transaction takes place (or over the internet - the county the customerlives in)
Example on a 20$ item with a 1$ discount.
Subtract right away so now itemshould be $19
Add your shipping charge here - $3.00
Subtotal should be 22.00
Add 5.5% tax 1.21
Total should be 23.21
shipping is taxed in WI
Hope thisillustration helps.
Good luck - any questions feel free to pm me.
KandleIndulgenc
10-25-2005, 12:10 PM
Hi there,
Okay, tax is based on the subtotal of a client's order. For example,
Product Cost $4.75
Discount: $1.00
Your Subtotal is $3.75
Tax is: $.21 (5.5% Wiscousin tax)
Shipping is: $5.00
Final Total Order: $8.96
Discounts should apply before you get your subtotal. If you are purchasing a product from another state you cannot pass on the tax that you paid to your customer. Another point, you can only charge your state tax to the customers that reside in your state. So for example, I live in Maryland and if I purchased your product you cannot charge me your state tax or my state tax UNLESS you have a MD Sales Tax & Use license.
I hope this helps.
Jameel
Okay, tax is based on the subtotal of a client's order. For example,
Product Cost $4.75
Discount: $1.00
Your Subtotal is $3.75
Tax is: $.21 (5.5% Wiscousin tax)
Shipping is: $5.00
Final Total Order: $8.96
Discounts should apply before you get your subtotal. If you are purchasing a product from another state you cannot pass on the tax that you paid to your customer. Another point, you can only charge your state tax to the customers that reside in your state. So for example, I live in Maryland and if I purchased your product you cannot charge me your state tax or my state tax UNLESS you have a MD Sales Tax & Use license.
I hope this helps.
Jameel
taytan
10-25-2005, 02:34 PM
Thanks you guys...but I am still kind of confused!! (STUPID!!??)
Jameel,
You said if you were from MD and you purchased something from me (in WI) I could not charge you my state tax or your statetax. What tax would I charge??
Please clarify for me.
Jameel,
You said if you were from MD and you purchased something from me (in WI) I could not charge you my state tax or your statetax. What tax would I charge??
Please clarify for me.
babyfud
11-14-2005, 04:50 PM
Thanks you guys...but I am still kind of confused!! (STUPID!!??)
Jameel,
You said if you were from MD and you purchased something from me (in WI) I could not charge you my state tax or your statetax. What tax would I charge??
Please clarify for me.
I live in WI and wholesale candles. If I sell to someone outside of WI I don't charge tax, this is according to my tax leaflet I was sent when I got my sellers permit. The customer in the other state is supposed to report what their sales tax should have been and pay their state. It's the same with most of the internet ordering, there is no tax unless you reside in the same state as that company. I hope this makes sense. Also I am not sure you tax the shipping, can't remember that info. Oh and WI had different sales tax depending on your county. Brown CO is 5.5 but appleton(outagamie) is only 5%.
Jameel,
You said if you were from MD and you purchased something from me (in WI) I could not charge you my state tax or your statetax. What tax would I charge??
Please clarify for me.
I live in WI and wholesale candles. If I sell to someone outside of WI I don't charge tax, this is according to my tax leaflet I was sent when I got my sellers permit. The customer in the other state is supposed to report what their sales tax should have been and pay their state. It's the same with most of the internet ordering, there is no tax unless you reside in the same state as that company. I hope this makes sense. Also I am not sure you tax the shipping, can't remember that info. Oh and WI had different sales tax depending on your county. Brown CO is 5.5 but appleton(outagamie) is only 5%.
