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Charging Sales Tax


Candybee

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When I have to charge sales tax at a show I have been adding it on top of the sale price. I just assumed this was how you do it. Now I am wondering if it might be better to just take the tax off the total sales instead.

I'm still new to doing craft shows so I'm not sure. Can someone tell me what they do or if I'm doing this right? Thanks.

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I would agree. If you want to post a round number, i.e. 5.00 as the selling price, I would display it as the price + tax (i.e. 4.74 + 0.26 tax = 5.00) or just put 4.74

I think a majority of the states require that you cannot post it as the price including tax. It has to be shown in such a way that it displays the actual price.

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Well here in Louisiana I CAN add the tax to my selling price, for instance $10.00 for a candle with 9% tax = $10.90, so just charge $11 and have a sign saying "Candles $11.00 tax included". My accountant said as long as I back the tax out of the final money collected I can do that. It just saves me from having to have SO much loose change. So maybe you do need to check by the state.

Beverly

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In most states (that collect sales tax) you can include sales tax in the total price of an item, but you must STATE that the tax is included. I do so with a sign.

16oz candle - $16.50 (tax included)

As someone said, check with the state office that regulates your sales tax as each state has different laws/rules.

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