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Tax Collecting and Candles in store


Ashleigh
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Okay I know that title work! lol Couldnt figure out how to word it! :D

Anyway! I got my b&b and candles in a store (started on Dec 2nd)

Well now thinking about taxes... I dont know how that works!

She collects taxes on my products-Does she need to give that to me to turn in or how do I claim that???

It is not a wholesale account- I just stock what ever into it she keeps 10%.

Anyone have info on this? Or know how this works?

Thanks!

Ash

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So how would I go about turning that in??

And if I dont collect the taxes myself I dont have to turn that in to the dept of rev. but I can still turn it in as sales on my end of the yr taxes correct??

Lord! lol I never guessed the taxes would be the hardest part of this business!

thanks for all the help guys!

ashleigh

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What you need to do is get her Sales Tax ID #.

There are forms for each state.(sales tax exempt forms).

She needs to fill in her ID# and sign it stating that the store is collecting the tax on your products.

That way you are not paying sales too! (Don't want to pay the gov. twice on your product:eek: )

Just keep the exempt form with her ID for your files in case you are ever audited.

Then when you fill out your sales tax each quarter, their will be lines that say:

Taxable sales - (Private sales you may have that you collected tax for)

Non Taxable sales- Sales that have been tax exempt because the store your product is in is paying the sales tax.

I hope this is making sense to you.. I know what I want to say... Just not always good at puting it in writing...

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My state tax lady took my income, (similar to yours) and said it was considered wholesale, she put it in with my wholesale accounts. That is also where she stuffed the fundraisers.

Look in your government pages in your phone book, ot call your coutnry office and ask where your nearest state revenue office is. They will help you. answer all your questions and most will fill out your forms for you.

I have even seen people come in with a box of invoices. They do it for free. They are already there, might as well use them. Besides who else will know exactly how it to file it.

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I sell candles and things in a craft store. When I applied for my Tax ID # I specifically asked about this and, like Island Girl said, you need to get the store's Resale ID# for your files. I think you need to do this every year to show they are still valid. This shows the gov the store is paying the tax on the item for you. The guy said that the store actually takes ownership of the product at the point of sale and pays the tax. This is specific for the state of NY but sounds like other states have the same practice.

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  • 6 years later...
What you need to do is get her Sales Tax ID #.

There are forms for each state.(sales tax exempt forms).

She needs to fill in her ID# and sign it stating that the store is collecting the tax on your products.

That way you are not paying sales too! (Don't want to pay the gov. twice on your product:eek: )

Just keep the exempt form with her ID for your files in case you are ever audited.

Then when you fill out your sales tax each quarter, their will be lines that say:

Taxable sales - (Private sales you may have that you collected tax for)

Non Taxable sales- Sales that have been tax exempt because the store your product is in is paying the sales tax.

I hope this is making sense to you.. I know what I want to say... Just not always good at puting it in writing...

I know this is super old, but it was precisely the answer I was seeking and just wanted to say thanks for sharing the info. People are still reaping the value of it.

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Yup Yup.. the person who sells it last is responsible for the sales tax. :D

You need to look into your States rules. In Hawaii I charge a wholesaler 0.5 percent excise (sales) tax and she charges the public 4.16 percent. Its not the last person to sell the candle that pays the sales tax.

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