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View Full Version : Sales Tax
Rudie0730
03-06-2006, 03:09 PM
I'm so confused about sales tax. I know that the company charges us sales tax. So, I was planning to charge my customers sales tax in order to make up the money I have to pay. Now, do we need to send this sales tax we collect anywhere? If we get a resellers license does that mean the company doesn't charge us sales tax? How do I get a resellers license? Help I'm totally lost.
UNcommonScents
03-06-2006, 03:13 PM
Hi Ruthie,
Unless you have a reseller's license, the company charges you the sales
tax on the retail price, as you said. Then, THEY pay the sales tax, so you
are not accountable for this, as you have already been charged for it.
However, if you obtain a seller's license, you will be charged sales tax on
the EXACT amount that you purchase the items for, and then you are
responsible for reporting and paying sales tax on items.
In both situations, you will charge your customers sales tax on the retail
cost of the products they purchase.
Hope this helps! Hang in there, you'll be an "old pro" before you know it.
Unless you have a reseller's license, the company charges you the sales
tax on the retail price, as you said. Then, THEY pay the sales tax, so you
are not accountable for this, as you have already been charged for it.
However, if you obtain a seller's license, you will be charged sales tax on
the EXACT amount that you purchase the items for, and then you are
responsible for reporting and paying sales tax on items.
In both situations, you will charge your customers sales tax on the retail
cost of the products they purchase.
Hope this helps! Hang in there, you'll be an "old pro" before you know it.
Rudie0730
03-06-2006, 03:20 PM
Kitt,
I'm a little slow. Let me see if I understand this correctly. As long as the company charges me the sales tax on the full amount I do not need to send any additional sales tax to the state. I could charge my customers tax and keep this money. Since they are only reimbursing me for what I already paid out. Is this right?
Ruth
P.S. Does it show that I never sold a thing in my life? I've never even had a yard sale.
I'm a little slow. Let me see if I understand this correctly. As long as the company charges me the sales tax on the full amount I do not need to send any additional sales tax to the state. I could charge my customers tax and keep this money. Since they are only reimbursing me for what I already paid out. Is this right?
Ruth
P.S. Does it show that I never sold a thing in my life? I've never even had a yard sale.
UNcommonScents
03-06-2006, 03:23 PM
You've got it Ruth!
You're doing great- there's a lot to learn when you start a new business.
Ask lots of questions, take copious notes, and grow, grow, grow!
Oh, and BELIEVE in yourself, too! smileys/smiley2.gif
In all you do, CHOOSE Success!
You're doing great- there's a lot to learn when you start a new business.
Ask lots of questions, take copious notes, and grow, grow, grow!
Oh, and BELIEVE in yourself, too! smileys/smiley2.gif
In all you do, CHOOSE Success!
Rudie0730
03-06-2006, 03:27 PM
Thanx so much. I need all the help I can get. My brain is drained I've been sniffing too many candles.
SandyMilton
03-06-2006, 04:11 PM
I am one that chose to remit my own tax. The reason being, I don't want to pay full sales tax price for my own products I use for personal use, for marketing, etc. It's not that hard to do, just keep track of what you sell and for how much. I keep a little free checking account that I deposit the "sales tax" funds into so on a quarterly basis, I write a check for the balance in the account and remit it to the state. Not that bad smileys/smiley17.gif
Just a side note to tuck away for future reference in case you start doing fundraisers and are still having the company charge you sales tax. Typically you'd charge the organizationsales tax just like anyone else.
However, ifan organization is choosing to use their tax exempt standing, you will need to first get a sales tax certificate. Scent-Sations will need to have a fax of your certificate on hand in order to not charge you sales tax. You would need to keep a copy of that organization's tax exempt form for YOUR records only.
This doesn't mean you have to keep your sales tax info active with the company unless you need or want to - just contact them again when the fundraiser order has been completed to make sure they start charging you tax again.
Just a side note to tuck away for future reference in case you start doing fundraisers and are still having the company charge you sales tax. Typically you'd charge the organizationsales tax just like anyone else.
However, ifan organization is choosing to use their tax exempt standing, you will need to first get a sales tax certificate. Scent-Sations will need to have a fax of your certificate on hand in order to not charge you sales tax. You would need to keep a copy of that organization's tax exempt form for YOUR records only.
This doesn't mean you have to keep your sales tax info active with the company unless you need or want to - just contact them again when the fundraiser order has been completed to make sure they start charging you tax again.
