Originally posted by kmh
Since I have very few customers in my state, I just eat the taxes & don't charge the customer any "extra". (My estimated tax payments are calculated into my operating costs, and becomes a piece of how I set my pricing structure.) So, there is nothing on my website about taxes, each customer just pays the price I set.
Do you mean that even though you charge everybody the same abount, you keep track of which customers are from your state, and calculate tax on that... so that on your books they are paying less in the sale, and the balance in tax... and you submit that tax amount to the state?
In other words, as an example... you have five customers and one of them is from your state. Sales tax is 10%, and you charge $20 per month... So while your income is $100 gross, you consider payment from one customer to be an $18.19 sale with $1.81 in sales tax? (Not, of course, that you'd deal with it that way for every sale, but that sort of calculation when coming up with your sales tax liability.)