WAHM Forums

Maybe this is just common sense, but I just want to make sure...


I got my tax ID for my state for when I do fundraisers and craft shows and all that, but if I do a fundraiser in another state will I need to get a tax ID for that state also?


And I only use my ID when doing fundraisers and shows right, not for everyday orders?


Sorry, but anything that has the word tax in it has me...smileys/smiley5.gif


Thanks!


Olivia

Hi Olivia!

You use the tax ID so that Scent-Sations does not charge you sales tax-
they can not use a tax exempt number from a third party (the
organization doing a fundraiser with you) because you are the person
ordering the candles from them. But if you have a tax I.D., they only need
to charge you tax on the wholesale price of your jar purchases, so that
you in turn are not paying tax on the retail cost, and do not need to
recoup that cost from your customers (in this case, a tax-exempt
organization).

I don't know how clearly I explained that for you, so feel free to PM me if
it doesn't make sense, ok?

Have a great day, you deserve it!smileys/smiley17.gif

--Kitt

Friends,


I have a question on that same line ....


I also have gotten my tax I.D. # from my state (NC) to use for fundraisers, etc.





I have not had a tax-exempt fundraiser organization yet, but I will use it for when I do. So if we send it fora tax-exempt organization fundraiser, does the company automatically stop reporting our tax to the state or do we just tell them we want to just use it for this fundraiser order. I would like for SS to continue remitting my tax for me just as they always have. Ithink that since I have my Tax ID # I still have to remit a quarterly form to my state but just put on the form -0- tax due each quarter since SS is remitting tit for me.





Is this correct? Anyone know for sure.





Thanks, Cindy

Thank you, that does make sense.


I still think I'll PM you with a couple more questionslater if that's ok?


Thanks Kitt~You're awesome!

I was wondering that exact same thing, Cindy.


And why do we need the tax ID for craft shows?

OMG!! THanks for posting that info. I never realized that we would need a taxID. Wouldn't our social#'s do in place??

Aw shucks, Olivia! Thanks for the compliment! Feel free to PM or call me
anytime you have questions.smileys/smiley17.gif

Cindy- I am not clear about whether a tax I.D. on file with the company
means they will always charge you the wholesale tax on your orders, or if
you can specify when you want them to do this- but I am sure if you call
the toll free order number they will give you the correct answer to this
right away- they are awesome when you call!

Kira- Craft show organizers often insist on having your tax ID number so
they know that you are collecting/reporting/paying in your sales tax.
(Liability issue for them- so being able to submit your Tax. I.D. number to
the state releases them of responsibility.)

You are not *required* to have a tax ID number for fundraisers, but when
working with a tax exempt organization, you will still be charged retail
price tax on products unless you have a tax I.D. number, because the
company cannot charge tax based on a third party- and you are not a tax
exempt organization!smileys/smiley2.gif

--Kitt

Edited by: UNcommonScents

I guess I'm still not understanding the tax id thing.smileys/smiley5.gif

Kira, if you are doing a fundraiser for a church group for example.... they have a paper that they need to give you a copy of that tells you they do not have to pay state sales taxes on any purchases. So if their fundraiser sells a case of candles at $18.95 each, they only need to give you $227.40... no tax added on.


Unless you also have filed for a sales tax ID number with your state, you WILL be charged sales tax (based on retail prices) from Scent-Sations. Once you turn over your sales tax ID number to the company, they will no longer charge you sales tax on the products.


If you are selling to customers that are required to pay sales tax, you will still collect the sales tax as usual from them, however you will need to pay that sales tax to your state (on a quarterly or annual basis). This is easier than you'd think - you already know how much sales tax you charged your customer. Just deposit the money in one of those free checking accounts out there at one of the many banks (easy to keep it separate from your other funds) - and when it's time to remit the funds, just write a check for the balance in that account.


Craft shows, flea markets, etc also want to see proof of a sales tax ID in most cases before you sell the products at their events. This shows you are a "legitimate" business to them. They do not want to be responsible for collecting sales tax for all their vendors.


As for Scent-Sations only using the sales tax ID number for tax exempt fundraisers, and collecting tax from you during all other sales - that is a question that only they can answer.


I personally have a sales tax ID number. The reason is, I want to pay sales tax on what I actually charge my customer for the candles. I also use votives as marketing and would rather pay tax on OUR cost per case of votives rather than the retail cost per case.


I hope this helped :)Edited by: dreamakr36

Thanks Sandy. It makes sense now. I did pour through all the papers in the back office and stuff, but I didn't find what I was looking for. I'm looking at doing a fundraiser with the PTA, so I guess I'd better get myself a tax ID before I do that!! smileys/smiley36.gif

For me it didn't cost anything to GET a sales tax number - just keep "remitting" the coupon with $0 for each quarter you don't use it. As you get prospective fundraisers, check with them to find out if they have a tax exempt certificate. If they have one they plan to use, just make sure you keep a copy of that on hand!

But you have to remember, they wont charge you now for sales tax, but when you file your taxes you will have to file that. So your not winning or losing. Its just a matter if you want to pay now or later at the end of the year. That is one of the reasons why I didnt do that. When I do fundraisers I charge 19 per candle and give 5 to the organization. So in the end you will have enough for sales tax and shipping. Be careful cuz if you use the exempt form you will have to pay for in the end. smileys/smiley2.gif

If you use the sales tax certificate, you will pay for it either quarterly, annually (or what ever the choices may be in your state).


If you do a fundraiser that has an excempt certificate - you do not pay sales tax to the state on that sale. This is why you keep a copy of that certificate with the documentation from the company. This way if your state ever questions why you didn't pay sales tax on a particular purchase (I've not had this happen for anything yet, not sure if anyone else had though) - you can produce the documentation from the fundraiser, their purchases and their copy of the exempt certificate. It's just all in the file keeping.

Thanks Sandy for mentioning the tax exempt thing! I would have never thought to ask for a copy. I would hate to get audited and not have proof thatthere were tax exempt sales!