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Sales Tax Plain and Simple (Read 570 times)
Dora Spanish
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Dios te bendiga!

Posts: 321
Sales Tax Plain and Simple
07/28/07 at 1:38pm
 
Hi There!
 
I've seen some questions come up on other posts and thought I would try to help people.  My day job is accounting and I have done that for about 15 years.  I've worked for a lot of different companies that have had to pay sales tax one way or the other.  This year my current employer's business went through a sales tax audit and I learned even more valuable lessons.
 
Today I thought I would give you a simple way to look at sales tax and then in another post I will address drop shipping.  Drop shipping sales tax is a little more complicated so I want to write about that all on its own.
 
Here's the easy sales tax plan.
 
Make sales in your home state, pay sales tax in your home state, period.
 
Make sales in other states, don't pay sales tax.
 
The best way to find out the rules is to go to your States' Department of Revenue website.  Unfortunately every state is different.
 
Here in Minnesota we don't pay sales tax on clothes except for accessories.  In our state a man doesn't pay sales tax on belts because they actually use them to hold their pants up but a woman has to pay because it's to accessorize.  So you can see sales tax can be tricky state by state.
 
Hopefully in a couple days I will have a posting about sales tax for drop shippers which are a little more complicated but you might think twice about getting involved.
 
Thanks for reading and have a great weekend,
Michelle Rothwell, Founder
Dora & Diego Homeschool Spanish
http://www.dorahomeschoolspanish.com
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« Last Edit: 07/31/07 at 10:07pm by Dora Spanish »  

Dora & Diego Homeschool Spanish
http://www.DoraHomeSchoolSpanish.com
The most comprehensive missions-minded Biblically-based Spanish curriculum.

Isagenix Associate http://doraspanish.isagenix.com
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Dora Spanish
Administrator
*****


Dios te bendiga!

Posts: 321
Re: Sales Tax Plain and Simple
Reply #1 - 05/06/10 at 3:56pm
 
There is one exception to paying sales tax in other states and that is if you go there as a conference vendor.  If you do this then you need to check with that states sales tax office to see what their rules are for collecting and paying.
 
For instance, I went to the North Dakota Homeschool Association conference this spring as a vendor and I had to apply for a resale license as a temporary vendor.  While I was at the conference, I collected sales tax on all of my taxable items according to North Dakota laws plus I had to collect a 2% tax for operating within Fargo city limits.
 
Now that I am in their system, if I have any sales from customers through my website who reside in North Dakota, I must now collect and pay North Dakota sales tax.
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Dora & Diego Homeschool Spanish
http://www.DoraHomeSchoolSpanish.com
The most comprehensive missions-minded Biblically-based Spanish curriculum.

Isagenix Associate http://doraspanish.isagenix.com
WWW dorasandiego   IP Logged
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