#Sales Tax

[urbancripple]

9.99 Plus Tax

If corporations are going to migrate to electronic price tags so they can do surge pricing on the stuff we need, they better have the fucking decency to finally include the sales tax in the price of the item. At least give us this one thing while you further deepen this technocratic hellscape

[howtobeaconartist]

Do all cons in the US require I get a sales tax permit? Also can I use one permit for all states?

Kiriska: Most major conventions will require a sales tax permit. Some even require the permit just to apply to the con. Some may not, but you should always check specific cons for their requirements. I'd recommend being permitted even if the con doesn't require it.

Every state has its own sales tax system, so you need to get an individual permit for every state that has a sales tax. Yes, it's a pain, but that's the reality of doing business across state lines. (States without sales tax don't require sales tax permits, but may require other paperwork.)

I highly recommend also having regional sales tax programmed into your POS and setting a reminder to switch/update them between shows. Sales tax can vary between cities and counties, in addition to state, and you're likely going to need to report the amount for each region.

For example, I mostly just vend in Washington state these days, but I still have individual tax rates in Square for Seattle, Tacoma, Unincorporated King County, Bellevue, Lake Forest Park, Olympia, etc... When I report sales tax annually, I separate out and report the sales per region, because they all have different tax rates.

✨Small biz lyfe ✨

Further reading: #sales tax, #taxes, #permits and licenses

[phoenixyfriend]

International Taxes

Ko-Fi prompt from Ethan:

All I know about tariffs is that they're special taxes for international trade but people talk about them all the time. Please help explain

So we are going to talk about three things here:

Tariffs

VAT

Customs/Duties

I'll be using the US for most of my examples, because that's what I know best... and also because it's a very convenient example for the way VAT works on an international level.

Tariffs

You are correct that tariffs are special taxes for international trade. These are essentially fees that are applied to products being shipped in and out of a country in order to promote domestic product or impact a foreign one.

A common example is US steel. The United States has a fairly robust steel industry, and the government promotes that industry domestically by applying tariffs to imports. Back in 2018, Trump imposed a 25% tariff on steel imports and 10% on aluminum (something that the WTO said was illegal, but that's not relevant right now). The steel tariff had previously been a range of 8-30%, implemented by Bush in 2002. Prior to that, the steel tariff had generally been under 1%.

In applying that tariff, the federal government prioritized domestic purchasing. If domestic product is nominally $90 for one unit, and foreign product is $80, then it is cheaper and more appealing to buy from a foreign producer. With a 25% tariff, the foreign product is now functionally $100 per unit, making it more appealing to buy domestically. While the actual cost of the tax is born by the producing country, in the case of import tariffs, the result is the raising of costs when selling internationally.

Tariffs are also applied to specific countries. Once again using a Trump example, a $50 billion tariff was applied against China in 2018. This had negative impacts on the economy, as it led to worries of a trade war; China did retaliate by applying tariffs directly to specific products from the US, including wine and pork.

High tariffs theoretically lead to an increase in domestic trade, but they also lead to higher rates of smuggling. They are also a form protectionist policy, which was at its height in the 19th century for the US.

VAT - Value Added Tax

If you look up VAT, you get a lot of explanations that talk about how it is a tax that is levied against the consumer on the basis of the cumulative value of the product, and generally things are confusingly worded, so I'll save you some time:

It's sales tax.

If you are American like me, that's all it is. It's a different name for sales tax.

You get something for $8 at the store, but the final cost is $8.42? Those 42 cents are the VAT.

What does that have to do with international trade? Isn't that a domestic thing?

Well, yes and no. We'll start by comparing the US to most European countries.

See, the US has a different application of VAT than a lot of other places. In the US, sales tax is added at the very end of a purchase for the vast majority of places. This is because there is no federal sales tax. Instead, taxes are set by the state, county, and city governments. Take a look at this map of New York, and you'll see how much sales tax varies by just a few miles.

Given how much a pricing can vary from one town to the next, large corporations generate a greater profit by listing prices in their pre-tax form, and then adding that tax at the end. The consumer knows that there will be a higher price at the counter than is listed, because the standard in the US is to not include that tax. So your Arizona Iced Tea will be a $1 in Portland and $1 in Queens County, matching that promise on the can... but you'll still be paying $1 in Portland and $1.09 in Queens, because only one of those areas has sales tax, despite both being in the same country.

This works out for the retailer, because the consumer does not blame them for raising prices across county lines, if there is a sales tax hike. The thought of "it's cheaper ten miles down the road, I'll get to it later," followed by never getting to it and thus never making a purchase, is rarer, because the listed price is still the same. It also means having to print or design fewer price tags; imagine having to manually change every price in a supermarket magazine! Every coupon needs to have its price changed by a few cents, to account for tax!

...or you can just print the same magazine with the same prices and write "plus tax" after the listed cost.

All this to say, Americans are used to adding sales tax at the end, and knowing that the price they see is not the price they'll pay.

Other countries Do Not Do This.

I mean, some do. But we're talking about the ones that don't, which includes the entirety of the EU, India, some of Japan, and the country I actually have extensive experience with: Serbia.

I am currently in Serbia, which means I'm in a country with a sales tax/VAT that is higher than I'm used to (20% on most goods, 8% on essentials). In every store I've been to, the tax is included in the listed price. If it says 87 rsd on a carton of milk, I will be paying 87 rsd at checkout. The baseline price is 80 rsd, and then there's the 8% tax, and the final price is 86.4, which gets rounded up to the 87 that is listed on the tag.

If you aren't accustomed to thinking about VAT like in the US, online shopping can be... a trial.

If I purchase something from, say, Canada, and have it mailed to the US, I am given the sales tax as part of the purchasing process. It will format the receipt as the product plus sales tax. This is familiar to me.

To someone from the EU who does not purchase internationally (specifically from the US, Canada, or other countries that don't include sales tax in the sticker price), this tax can often come as a surprise.

And, finally, in some cases... the will be paid at the very end, at the point of pickup, along with customs. I recently purchased something from an English creator that was manufactured in Germany and then shipped to Serbia. I anticipated that I had paid the VAT for Serbia when purchasing the product. It was instead added at the point of purchase, as Serbia is neither in the EU nor in a trade agreement with the relevant countries that would allow for me to pay the VAT online, I had to pay the 20% in addition to customs when picking up the package from the postal office.

Despite not being a tariff or customs/duty payment, VAT can have a direct impact on international purchasing.

Customs/Duties

Customs and duties are taxes applied to products based on those product characteristics.

There is overlap with tariffs. As a consumer, you are... not going to be very affected by the difference between customs and tariffs.

Customs are like VAT, in that they are paid by the consumer rather than by the manufacturer.

You can think of tariffs as a fee that a manufacturer pays to sell something internationally (though that cost is often passed on to the consumer), and customs as a fee paid by a consumer to receive that good.

Hope this helps!

(And if anyone here is more familiar with the subject than I am, please feel free to add on or correct me! I'm generally pretty good about international policy, but I'm not an expert, and this subject can be a complicated one.)

(Prompt me on ko-fi!)

[lunaamorris]

How Shopify Accountants Handle Sales Tax Calculation?

Sales tax compliance is one of the most complex aspects of running an eCommerce business, particularly for Shopify store owners who sell across multiple states or countries. Shopify accountants play a crucial role in ensuring that sales tax is calculated correctly, helping businesses stay compliant with tax laws and avoid penalties. Here's how they manage sales tax calculations for Shopify businesses.

Understanding Sales Tax Complexity in eCommerce

Sales tax laws vary significantly depending on the jurisdiction—different states, cities, and countries have different rates, exemptions, and rules. This complexity is even more pronounced for Shopify store owners who often sell to customers across various regions. For U.S.-based businesses, this means navigating the complexities of state-level sales tax and, in some cases, county or city-specific tax requirements. International sellers face additional challenges, such as VAT (Value-Added Tax) in Europe or GST (Goods and Services Tax) in other countries.

Configuring Sales Tax Settings on Shopify

The first step for Shopify accountants in handling sales tax is ensuring the proper configuration of the sales tax settings within Shopify. Shopify provides tools to automate the calculation of sales tax, but these need to be set up correctly. Accountants ensure that the store’s tax settings account for:

Sales tax nexus: A business must collect sales tax in states or regions where it has a "nexus," meaning a significant physical presence or economic connection. Shopify accountants help determine where the store has nexus, whether through physical locations, warehouses, or a certain sales threshold.

Product taxability: Some products are exempt from sales tax, while others are taxable at different rates. Shopify accountants help ensure products are correctly categorized to ensure accurate sales tax calculations.

Tax rates: Shopify automatically calculates the appropriate sales tax rates based on the shipping address, but accountants help ensure that Shopify is using up-to-date and correct rates for all regions where the business operates.

Multi-State and Multi-Country Tax Compliance

In the U.S., different states have different sales tax laws, including varying tax rates, taxable goods, and exemptions. Shopify accountants monitor where the business has a sales tax nexus and configure Shopify to apply the correct rates for those states. Similarly, international sellers must ensure compliance with VAT or GST in countries like the UK, Canada, or Australia. Shopify accountants often work with third-party tools like Avalara or TaxJar to automate these calculations for multiple states or countries, reducing the risk of errors.

Sales Tax Reporting and Filing

Shopify accountants play a crucial role in ensuring proper sales tax reporting and filing. Shopify collects and calculates the sales tax, but accountants ensure that this data is accurately reported on the relevant sales tax forms. They also track sales tax collected in each jurisdiction, ensuring that businesses only remit the required amount to the correct authorities.

Accountants also help Shopify store owners determine the frequency of sales tax filings—whether monthly, quarterly, or annually—based on the store's sales volume and the tax laws in each state or country. They ensure that deadlines are met to avoid penalties and interest charges.

Handling Sales Tax Audits

In the event of a sales tax audit, Shopify accountants ensure that all records are in order and that the business is prepared for an audit. They maintain detailed reports and documentation of sales tax collected, exemptions applied, and payments made. If discrepancies arise during the audit, accountants work with the authorities to resolve the issues and minimize the impact on the business.

Keeping Up with Tax Law Changes

Sales tax laws are continually evolving. Shopify accountants stay up-to-date on changes in tax rates, new sales tax rules (like marketplace facilitator laws), and jurisdiction-specific tax rules. They help Shopify store owners adapt to these changes to stay compliant, often working with third-party tools to automate updates.

Conclusion

Sales tax calculation for Shopify businesses is a multi-faceted process that requires careful attention to detail. Shopify accountants ensure that all tax-related requirements—ranging from setting up tax rates to handling multi-state and international taxes—are accurately managed. By leveraging automation tools, maintaining up-to-date knowledge of tax laws, and ensuring compliance, Shopify accountants help businesses avoid costly mistakes and focus on growth.

[ilonajosiane]

Managing Sales Tax For Multi-State Businesses

Operating a multi-state business brings growth opportunities but also introduces complexities in managing sales tax compliance. With varying tax rates, rules, and filing requirements across states, staying compliant can be challenging. Here’s a guide to help you navigate multi-state sales tax obligations effectively.

Understanding Nexus

The first step in managing sales tax is understanding nexus, which determines your obligation to collect and remit taxes in a particular state. Nexus can be established through:

Physical presence: Having offices, warehouses, or employees in a state.

Economic presence: Exceeding sales thresholds set by states (often referred to as economic nexus).

Ensure you monitor these thresholds to identify where your business has sales tax obligations.

Register for Sales Tax Permits

Once you establish a nexus in a state, register for a sales tax permit before collecting tax from customers. Each state has its process, so research the specific requirements for each jurisdiction where your business operates.

Keep Track of Tax Rates and Rules

Sales tax rates vary not only by state but also by locality (cities, counties, and districts). Additionally, states categorize taxable goods and services differently. For instance, clothing might be taxable in one state and exempt in another. Utilize sales tax automation software or consult a tax professional to stay updated on rate changes and applicable rules.

Collect Sales Tax Accurately

Implement systems to calculate and collect the correct sales tax from customers at the point of sale. For eCommerce businesses, platforms like Shopify or Amazon often have built-in tools to calculate sales tax based on customer locations. However, ensure the software reflects the latest tax laws for accuracy.

Maintain Accurate Records

Maintaining detailed records of sales, collected taxes, and exemption certificates is essential for compliance and audit readiness. Document all transactions and ensure exemption certificates are valid and up-to-date to avoid penalties in case of an audit.

File Sales Tax Returns on Time

Sales tax filing frequencies—monthly, quarterly, or annually—depend on the state and the volume of sales. Missing deadlines can lead to penalties and interest charges. Automation tools can help streamline filing and payment processes, ensuring timely compliance.

Monitor Exemptions and Use Tax

Understand which sales may be exempt from tax, such as wholesale transactions or sales to tax-exempt organizations. Additionally, monitor use tax obligations for items purchased out-of-state but used within a taxing jurisdiction, as these may require reporting and remittance.

Leverage Automation Tools

Sales tax software like Avalara, TaxJar, or Vertex can simplify multi-state compliance. These tools automatically calculate tax rates, track nexus, and assist with filing, saving time and reducing errors.

Conclusion

Managing sales tax for multi-state businesses requires diligence, organization, and the right tools. By understanding nexus, staying updated on tax rates, and leveraging automation, you can ensure compliance and minimize risks. For tailored advice, consult a tax professional offering tax planning for small business owners in Fort Worth TX to streamline your multi-state sales tax strategy and focus on growing your business.

[alyfoxxxen]

Louisiana lawmakers pass income and corporate tax cuts, raising statewide sales tax to pay for it | AP News

[fivecornerroom]

And the left's beloved Woodrow Wilson was one of the chief players!

[taxsysteminusa]

Excise Tax vs. Sales Tax: Understanding Key Differences

Learn the distinctions between excise tax and sales tax, including how each is applied, who pays them, and their implications for businesses. Excise tax vs sales tax: understand the unique features of these taxes and why they matter. This guide provides clear explanations to help businesses navigate tax compliance and make informed decisions.

[saicpaservices]

Simplify Your Sales Tax with SAI CPA Services

Navigating the complexities of sales tax compliance can be challenging for businesses of all sizes. At SAI CPA Services, we provide comprehensive sales tax services to ensure your business stays compliant with local, state, and federal regulations.

Why Sales Tax Compliance Matters

Failing to comply with sales tax laws can lead to penalties and disrupt business operations. Here’s how our sales tax services help keep your business on track:

Accurate Tax Calculations: We ensure that sales tax is calculated correctly for every transaction, considering the varying rates and rules across different jurisdictions.

Timely Filing: Our team handles all aspects of sales tax filing, ensuring your returns are submitted accurately and on time, helping you avoid costly penalties.

Audit Support: In the event of a sales tax audit, we represent your business and assist with providing the necessary documentation, ensuring a smooth and stress-free process.

How SAI CPA Services Can Help

SAI CPA Services takes the hassle out of sales tax compliance, allowing you to focus on running your business. Trust our experienced team to keep your sales tax matters in order and avoid surprises.

Connect Us:  https://www.saicpaservices.com https://www.facebook.com/AjayKCPA https://www.instagram.com/sai_cpa_services/ https://twitter.com/SaiCPA https://www.linkedin.com/in/saicpaservices/ https://whatsapp.com/channel/0029Va9qWRI60eBg1dRfEa1I

908-380-6876

1 Auer Ct, 2nd Floor

East Brunswick, NJ 08816

[taxnetaccounting]

Tax Net Inc | Sales Tax for Small Business in Berwyn IL

We file your sales and local tax anywhere in the US. Sales tax for small businesses is a consumption-based tax imposed on goods and services sold in Berwyn IL.

[taiwantalk]

It’s time that we understand what the harm of retail inflation is doing to us each time we go dining for example.

And we know that the retail price inflation is not directly caused by supply or increase in minimum wage. I’m only focusing on explaining the effects that consumers are facing.

Let’s say a meal that used to cost pre pandemic the following:

1) $7.00 meal

2) $0.70 sales tax 10%

3) $1.40 tip 20%

4) $9.10 cost total b4 inflation

Consumer could equate that with time saved & their own earning rate.

Now with price gouging which is averaging between 20% to 50% outpacing natural inflation with no significant wage increase.

1) $9.10 meal with 30% increase $2.10 more

2) $0.91 sales tax at 10% paying $0.21 more

3) $1.82 tip at 20% paying $0.42 more

4) $11.83 cost total paying $2.73 more

That’s 39% increase in spending on consumer due to a 30% increase by artificial price increase. Consumer end up being forced to pay more on sales tax & tip but the meal remains the same.

The server is not doing anything different because it’s the same meal. But the server now gets $0.42 more on tip all because owner jacks up prices. And likewise sales tax goes up.

Simply put, price increase causes tip & sales tax increase while the same meal ingredients/materials may have cost a 5% increase.

So for the time being, one should consider tipping lesser than 20% until inflation is corrected.

By my calculation, it would be reasonable to tip only 13% to be tipping the same amount as before inflation and reduce the increase in sales tax.

1) $9.10 meal with $2.10 increase

2) $0.91 sales tax with $0.21 increase

3) $1.18 tip at reduced rate of 13%

4) $11.19 total cost with purely only price inflation.

Consumer should not pay more sales tax & tips than before artificial inflation because both are not doing anything different.

[selataxandaccounting]

Discover Miami's Premier Tax Preparation Services

Sela Tax & Accounting is a premier tax consulting firm located in Miami, Florida, that offers a comprehensive suite of services tailored to meet all your tax needs. As a full-service firm, we specialize in sales tax filing, expert tax consultancy, detailed accounting, and precise tax preparation services. Known for being the best tax preparation services in Miami, our highly seasoned tax consultants bring years of expertise to the table, ensuring you receive the utmost guidance and support. Our experienced team diligently works alongside you to navigate the intricate tax codes, ensuring that you capitalize on every available deduction and significantly reduce your tax burden. We pride ourselves on delivering personalized services that meet each client's unique financial situation, backed by our commitment to integrity, accuracy, and efficiency. Contact us at 305-747-7424 to experience unparalleled tax consulting and filing solutions.

[mehracpa]

For someone like you who owns a business in Canada, it is important to grasp the concept of sales tax. It doesn’t matter whether you are just starting out or expanding; finding out more about the tax regulations on selling is an important step towards avoiding penalties and making sales easier with customers. Sales tax can be tough. Each province has its own rules and rates. This Blog simplifies Canada's sales tax requirements when selling goods or services.

Read Blog- https://mehracpa.com/sales-tax-in-canada-when-selling-goods-services/