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Reply by bonesbr549

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Posted on Simple and accurate way to charge sales tax?

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bonesbr549

1548 posts in 3065 days


#1 posted 05-12-2015 12:45 PM

Back years ago when I did the craftshow deal. I felt I’d better be on the level, so I went through what you are facing.

First, you need to know your state. Each is different. I know where I’m at now, there is a state sales tax and local tax added together.

When I did it I was living in VA, and they were simple 4.5%. I would figure final pricing by:

Adding (materials cost) + (overhead rate) + (Profit margin desired) + (state tax required)= Price

I would round up the price to make it easy to account for in a spreadsheet. If you will be above board remember to account for income tax in your price.

For example if all the first items added together was 100 bucks, then would multiply 100 * 1.045 and that rounded would be 105$.

I used a simple receipt book to keep records of sales, and my spreadsheet made it easy for reporting and tax purposes. Remember to keep those records! Back in the day early computers I scanned everything and kept it on floppys. Now cheap off the shelf software would help you do all that.

Depending on states, reporting/filing requirements vary. I had to file Quarterly, even if I had no sales. Also remember you probably will require a taxid from the state as well.

It’s all a royal pain-in-arse for sure.

Good luck.

-- Sooner or later Liberals run out of other people's money.


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