Wholesale & eBay Forum Importing & Customs Simple sales tax question

Simple sales tax question


artpants
Full Member
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  • Joined: 18 Dec 06
  • Karma:
5 Jul 07 12:52:03 am
Can someone help me with a sales tax question? I file my business sales taxes quarterly. if i have a couple ebay customers in-state that i've charged sales tax to, how do i include that or compute that into the form? Do i just not worry about it and include it with the total sales for the quarter, or do i need to add it with the total tax due? In other words, if i've collected sales tax from some in-sate customers, how do i report that or include that or figure that into my quarterly filing? Please help. Thank you :)


gulfy13
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  • Joined: 12 Jun 07
  • Karma:
6 Jul 07 07:31:04 pm
You should have a local office fairly close to you somewhere. I would call them and ask, just to be safe..I just add it to my total sales and then compute the total tax, (which is 7% in my state) and then I send the total tax on that figure. My form is fairly simple,, and has a space for 'total sales', then, total sales X 7%, then: total tax due...


artpants
Full Member
  • Posts: 95
  • Joined: 18 Dec 06
  • Karma:
6 Jul 07 08:52:32 pm
right, so from what you are saying you just don't worry about it, it is just part of your total sales. so your total sales includes whatever sales tax you may have collected.. am i understanding you?


gulfy13
Full Member
  • Posts: 472
  • Joined: 12 Jun 07
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7 Jul 07 05:20:41 pm
Yes. On my form you add up all of the sales and get one total amount. And enter that total amount on the form. Then you will just pay tax on whatever that total amount is.

For instant if you sold 5 items (locally within the state):
gold watch: $5.00...from my store
gold ring: $5.00...from my store
blue hat: $5.00...from my store
red hat: $5.00...on ebay,but within state
white hat: $5.00...on ebay, but within state

total sales to put on tax form: $25.00

Then you will pay tax at whatever your tax rate is. Mine is 7%.

total state sales: $25.00
tax rate: 7%
total tax: $ 1.75

amount I have to pay state: $1.75

What ever you sell WITHIN your state, wether it is sold from your brick and mortar store, from your garage or from ebay, you add all of those up and get a total and pay the tax rate on that total amount...

Last week I had $980. in internet sales. I had one sale in that amount that was within my state for $27.00.
At the end of the period, I will add just that
$27.00 to my total on the tax form. The remaining $953 I wont pay state tax on...


 

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