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(US) Tax work arround

GrahamGraham
edited July 2013 in General Vote Up0Vote Down
Since I brought up the tax issue :-
I think I have a way round it - maybe.

By supplying an invoice after the sale, showing tax separated. Store prices stay the same for all.
As this will only happen for in-state sales, it should only involve a small amount of work, that is if I actually sell anything!

Graham

Comments

  • 5 Comments sorted by Votes Date Added
  • LawrenceLawrence
    Vote Up0Vote Down
    Would you charge the same for everyone, but then send an invoice to the customer with a reduced item cost, but tax added on?

    Amazon kind of works like this for marketplace sellers, on the interface there is no concept of tax, there is just one price for everyone, but for some sellers that price includes tax and for others it does not. If a customer were to ever asked for an invoice from a seller that had tax, they would give an invoice with a reduced item cost plus the tax.
  • DadsAfolDadsAfol
    Vote Up0Vote Down
    That's effectively what I do. I'm not sure how NC law differs from CA law. I have to pay sales tax (due tomorrow as a matter of fact) on sales to CA residents. So I download my orders, and impute the lower sale amount + tax = original sale amount. In CA I have to pay it, but there's no obligation to show it to the buyer. So as long as the solution can be hidden where not required, it sounds good to me.
  • GrahamGraham
    Vote Up0Vote Down
    In NC the law states that sales tax cannot be absorbed and must be passed on to the buyer, however I don't see how that can be a problem if I send an invoice with the order, with items priced lower with tax shown separated... so that NC buyers end up paying the same.
    (basically I'll offer a local discount that is equal to the tax)

    I still have to find a CPA so will report back once I have an answer.

    How it impacts your "tax profile" box - is unless you can make it State specific, it serves no purpose, in the US.
    I doubt any sellers are based in more than 1 state (let alone all 50!!)
    ~graham
  • ThorThor
    Vote Up0Vote Down
    Well, the problem with NC and many other states is that the sales tax varies by county. So, for example, sales taxes in NC can range from a low of 4.75% to a high of 8.25% depending upon the county and municipality.
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