Tax Included queston.

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Guywithsoap?

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For those who sell in a brick and mortar environment (I'm including fairs/farmers markets, etc...) how do you handle tax?

Is it tax included? I assume that you would then simply calculate your total total gross sales -minus tax for your result?

Do you need to have a sign stating "tax included".

I ask because I have seen people selling things (non-food) do it both ways but I have no idea how these people are reporting income if indeed they are at all.

If this is already a thread simply remove and PM me the link. Thanks
 
I don't add tax in my prices. I add it at the end when we are totally the order just as you would if you where shopping at Walmart.

If you are going to include tax into the price I would have a sign stating that it is included in the price.
 
For the two sales I did, they insisted on paying, I listed tax separately. They sell sales tax sheets you can keep handy for when you're totaling up sales by hand.

I do have a Sales and Use Tax account already set up with my state for when I open for business so I'll be reporting it.
 
I make life easy: I round down to the nearest quarter for those paying cash (and offer it to the check payers), but record the actual tax collected for tax purposes. It means that on a $3 item, I eat the .24 (8%), but generally, making change is so much easier that the discount is worth it.
 
Just make sure if you collect tax (or say tax is included) that you actually remit to the state.

It's the difference between an assessment because you didn't collect tax and fraud because you didn't remit it to the state.
 
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