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Can you tax everything in your invoice or just the blank shirts?

325 Views 6 Replies 5 Participants Last post by  cleos
Can you tax everything in your invoice or just the blank shirts?
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I live in San Diego, CA
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I live NJ & there is no tax on clothing, printed or otherwise as far as I know. You would need to check with your state tax office.
I'm also in CA.

I try to make my invoices easy to read for the customer, and don't confuse them with set up fees, shirt cost, print fees, etc. I just simply have the Qty, a description, a piece price, and a total price that has all these prices factored in.

Then I subtotal and add a tax line beneath that. So I guess I am taxing everything.

I remember reading from the BOE handbook that labor charges are taxable, but you should read up on this. BOE has a lot of useful handouts that state specifically what is and isn't taxable.
Just invoice a per shirt total cost and tax it.
If you retail, you need to tax everything and report your sales to the state board of equalisation. If you wholesale, there is no taxes but you still need to report.

The concept is that the final consumer is the one who pays the taxes and that's why suppliers ask for your tax id and business license, to prove you are a business and not a consumer. They do report your purchase to the state board.

Be careful with the state board, they are vicious and will assume your sales if you don't report. No need to say they will overrate and you'll find yourself in a mess.

If you sell out of state, there are no taxes. But there are limitations and the board of that state could ask you to get a tax id.

More info at : Applying Tax to Your Sales and Purchases - Board of Equalization
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