Tax question

[LynnS]

Do I need to charge sales tax to a lady who is putting my candles in her shop.I told her with her having a storefront she needs to charge tax but do I need to charge tax to her. I get so confused on all this.I don't make any money and cut back alot since a BC (cancer dx) but people want my candles. I don't get orders often and my website for out of state people is up but only get maybe 4 orders a year.

Thank You

LynnS

[EccoLights]

So are you wholesaling the candles to the store? (I think that's how I read this). If so, then she would not pay sales tax to you, but would charge her customers tax when they buy from her.

Do also get a vendors number or license number (depending on your state of course) just in case Uncle Sam comes asking you questions.

Hope things get better for you and yours!

Rob

[barncat]

she is selling them, she charges the tax and files it.

[caryfh]

She should have something like a reseller's certificate that she could provide a copy of to you in case you wanted to have something to put with your other tax paperwork to be on the safe side. It's the same thing that local suppliers would need from you if you were trying to avoid paying sales tax on supplies you purchase.

[LynnS]

What I thought.She is doing the selling.Our name is on the candles.We decided not to wholesale but she will put them in her shop and gets a percentage of the sale.So no money unless she sells.

I only sell to friends(although the candles usually are given to them). Also out of state people.Even our tax perparer said we don't make that much money and after 5 years its a hobby.This is what the lady who does our taxes said.She sees what we do.That was when we did craft shows.We did good but the work was to much hauling, setting up and taking down.Not counting what the weather might be. Not sure this will be a lasting thing.Usually opening up craft stores don't last long in this area.

LynnS