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I was wondering how you charge the tax on your t-shirts.
Is your shirts $15+tax or do you say $15 tax included? I guess this question is more for vendors selling face to face. The $15 price tag is only an example.:)
 

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It depends on the venue.. If I am at a event and selling shirts at $15.00 then the tax is included. Keeps it simple and quick and doesn't require coin change.. but if I have a customer who orders on line and in my state they pay the sales tax. The majority of my business however is retailers reselling my product so they don't pay tax.
 

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i think the shirt price plus tax is the norm.
since it depends where the buyer is located.
as for local sales. Tax included may be harder to sort out when tax time comes along.

Tax included formula for 7% tax for exmaple is:

$ 15 x 7 = X
X devided by 107 = 7% tax amount

then you take the $ 15
and subtract the 7% tax amount to get the Net Sale Amount before tax. :D
 

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starprince said:
I was wondering how you charge the tax on your t-shirts.
Is your shirts $15+tax or do you say $15 tax included? I guess this question is more for vendors selling face to face. The $15 price tag is only an example.:)
At trade shows we often did tax-in. For a $20 item we would include the tax. In reality we were charging $18.86 for an item and with our taxes on top (6%) it came to $19.99.

Our customers definitely enjoyed tax-in. Even though they were still paying tax it appeared that they were getting a discount compared to other neighboring merchants who would charge the tax on top of the selling price. Actually, it became a selling point for many of our older customers. Younger people didn't seem to care as much.

If you are going to do tax-in, keep good records. You have to still prove to the government that you are charging tax to your customers. Either you pay it or your customer pays it, somebody has to pay it. :D
 

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when you guys collect tax, where do you put that money, it doesnt go straight to the government right? what does collecting taxes on items do for your business? i want to unrestand what this does thanks
 

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when you guys collect tax, where do you put that money, it doesnt go straight to the government right?
You collect the tax on the sale, it goes in your bank account and either quarterly or yearly, you pay the government all the tax you collected.
 

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If you are in California, you estimate your sales and provide that information to the State. Then, THE STATE tells you how often to file and pay. Based on your sales you may pay monthly, quarterly, or annually.

Also, you will pay sales taxes on your gross amount sold. This will not be the same as what you collected. Why? Well, in California we have to break done our taxes by many components. 6% for this, 1% for that, .25% for something else, etc, etc, etc. What that means is you will have mil breakage which means all the fractions of a penny will start to add up, mostly in your favor, and you will pay the State less than you collected.

As far as charging the sales tax separate, we do it both ways depending on the venue. For online sales and normal retal sales, we collect tax in addition to the purchase. Otherwise it is included. For wholesale sales to those with valid sellers permits, we charge no sales tax.
 

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Last time we did a show we charged a flat $1 for tax (even though it was about $1.40) to keep things simple. We might jsut raise the pprice a buck and promote tax included next time; I'm not sure yet.
 
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