Newbies to Sales Tax

Hi
First time filing sales tax and I have few questions to ask.
1)How do you calculate gross sales? If I sold one toy online with price of $10 and shipping fee is $5. so total is $15. The gross sales will be $15? or $10 with out shipping fee included ?

Greetings,
I would advise you contacting your Accountant and/or Government Tax office to find out the 'right' answer because it varies from state to state. As per my understanding the entire $15 would be taxable as you will be taxed by your courier company.
Antony

My impression was that only goods (and not shipping) was taxed.
Paypal auto-computes sales tax if desired by the merchant. Does anyone know on what value (before shipping or after shipping price) they calculate the tax?
-mike





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Quote:



Originally Posted by Mike - Limestone


My impression was that only goods (and not shipping) was taxed.
Paypal auto-computes sales tax if desired by the merchant. Does anyone know on what value (before shipping or after shipping price) they calculate the tax?
-mike


I'm pretty sure the goods are just taxed not the shipping also. I know services like Web Hosting are not-taxable in the United States.
All the best,





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hmm.. so the gross sales including the shipping fee?

Get professional advice from an accountant



Quote:



Originally Posted by Hostire


Greetings,
I would advise you contacting your Accountant and/or Government Tax office to find out the 'right' answer because it varies from state to state.
Antony


This varies by state. Highly recommend you contact your accountant or Government Tax Office as posted earlier.

Quote:



Originally Posted by GCM IT


I'm pretty sure the goods are just taxed not the shipping also. I know services like Web Hosting are not-taxable in the United States.
All the best,


Actually web hosting services are taxable, well here in Texas it is.http://dallas.bizjournals.com/dallas...12/story6.html






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Quote:



Originally Posted by LaneHost


Actually web hosting services are taxable, well here in Texas it is.http://dallas.bizjournals.com/dallas...12/story6.html



Ooops, I guess I forgot to add some states . Services aren't taxable here in Michigan. As someone said before, check with your state's goverenment





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Luckily its tax free in NY too!

Quote:



Originally Posted by deepman007


hmm.. so the gross sales including the shipping fee?



There a several things you need to find out regarding your State tax code. I am only familar with the state of KY.
Here with a $10 sale, $5 shipping and 60 cents worth of sales tax collected your gross sale would be $10.00 for all sales made to residents of the state of KY.
Gross revenue would include the tax collected and the amount would be $10.60. Actually I think it would be $15.60 and the non-taxable shipping would be deducted on a lower line. I really haven't filed one of these for a number of years now.
Shipments made to anywhere else in the world; your gross sales for sales tax purposes is ZERO and you should not have collected the sales tax in the first place on those sales as they are Interstate commerce and not subject to a local tax.
You need to study the filing form provided and set of your accounting system to model that to make you life very simple in filing these returns.
Here you get a very small % of the tax collected to pay for your time in filing the return.
Happy Returns (pun intended)





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Quote:



Originally Posted by klittl06


Luckily its tax free in NY too!


Minnesota as well





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Quote:



Originally Posted by Krishopper


Minnesota as well


Yeah, but Texas has no income tax.
As you can imagine, we