YooperCandles Posted January 19, 2006 Share Posted January 19, 2006 Actually two questions..........lol Question #1 - When you discontinue an item that was normally $10 and you reduce it to $7.50 for clearance, do you charge the sales tax on the $10 then subtract the amount off for the clearance; $2.50 in this case?Question #2 - When you give a % discount is the sales tax charged on the original price or discounted price?I know these are similar questions but they are not exactly the same for the reason they are price differences (discontinued item vs. sale)TIA for all who answer!!Pam in Upper Michigan Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted January 19, 2006 Share Posted January 19, 2006 My understanding is that sales tax is charged on the actual selling price. This would be $7.50 for #1 and the discounted price for #2. Quote Link to comment Share on other sites More sharing options...
YooperCandles Posted January 19, 2006 Author Share Posted January 19, 2006 Thanks sudsnwicks for your response.I could really use more input on this..........If you agree with sudsnwicks please let me know. I dont want to do this wrong.Thanks again ~ Pam in Upper Michigan Quote Link to comment Share on other sites More sharing options...
Fern-Marie Posted January 19, 2006 Share Posted January 19, 2006 Correct.If you charge sales tax above what you are selling the item for...IT IS TAX FRAUD, AND IS A FELONY....BE CAREFUL!Charge taxes on what you are selling the item for.Glad you checked before jumping in. Quote Link to comment Share on other sites More sharing options...
Sherie Posted January 19, 2006 Share Posted January 19, 2006 My BIL is my CPA and that's the way he explained it to me. I had to talk to him today because my sales tax payment has to be postmarked NO later than tomorrow. It's going in the mail today, yea! Quote Link to comment Share on other sites More sharing options...
GingerKay Posted January 19, 2006 Share Posted January 19, 2006 Actually two questions..........lol Question #1 - When you discontinue an item that was normally $10 and you reduce it to $7.50 for clearance, do you charge the sales tax on the $10 then subtract the amount off for the clearance; $2.50 in this case?Question #2 - When you give a % discount is the sales tax charged on the original price or discounted price?I know these are similar questions but they are not exactly the same for the reason they are price differences (discontinued item vs. sale)TIA for all who answer!!Pam in Upper MichiganIt might help if you think about it this way......When you go to Walmart or your local grocery store, do they charge you tax on your actual purchase or on what you "might" have spent if everything was full price? You are the same as any other retailer, only charge tax on the actual sale. Quote Link to comment Share on other sites More sharing options...
YooperCandles Posted January 20, 2006 Author Share Posted January 20, 2006 I really thought that was the way it would work, but wanted to make sure. I really appreciate the feedback.Pam in Upper Michigan Quote Link to comment Share on other sites More sharing options...
Scented Posted January 20, 2006 Share Posted January 20, 2006 Agree with suds here. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.