Sales tax charge at craft shows in the state of Georgia....?

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Original Post

I'm new to the entire business and I will be attending my first craft show here shortly.

I have registered through Georgia and my question is how do you charge tax on items during a show? Do you charge the tax included in your total cost of the item or do you do it separately? If you do them seperately, do you have a sign of some sort that states the percentage of sales tax?

Also, I will have cash or credit card option available to my customers. So I'm confused...by the end of the show I have cash and credit card sales tax. What do I do then and where do I send the money to and how often?

I'm sorry for all the questions!!! It's all so overwhelming and confusing!

Thank you so much for your help :)

Posted at 2:32am May 12, 2009 EDT

Responses

I feel it is best to add the sale tax to the purchase.. So if you sell a 10.00 item you would add the tax to that.. where i am it is 6% so the total would be 10.60.. if they pay with a credit card or with cash, you just collect the tax and add it to the bill. If you are able to accept credit cards then you must have a bussiness, which means you have a tax # right?.. You have to add up your sales tax from all sales and pay the IRS every 4 months. I pay mine online, but you should have recieved this info when you applied for your tax # and opened your bussiness.. If you are not sure you should call the Irs and get this info. If you do not file every 4 months, even if you have no sales thay can hit you with a 50.00 fine... You need to keep track of what you sold and how much tax you have collected for each quarter. If you have done 4 shows, sold 100.00 at each show in a 4 month period than you should have collected( I'm using 6% because that's what it is in my area, your percentage will be different because your in another state, and it can also vary county to county, so you need to find out how much it is at each show)$6.00 at each show, which would mean you owe the IRS 24.00. ... Not sure where you can get a chart.. maybe the IRS... but all you have to do is multiply the tax percentage by the amount of the sale.. AGAIN USING 6%... I have a 25.00 sale.. 25.00 x 6% is 1.50.. so I have to collect 26.50 from my customer... Now I owe the IRS that 1.50

Posted at 3:11am May 12, 2009 EDT

GoTo says

It is not legal in every state to add the sales tax to the purchase price, nor to pay it for your buyers.

The IRS is federal and has nothing to do with sales tax--you need to contact your state for info on sales tax.

Sales tax and business laws vary widely from state to state and often from city to city/county to county. Your best bet it to contact state and local officials to find out what is required for your type of business in your location.

Since you said you registered, they should be providing you with the info on when you are supposed to remit the tax to them. In NY it was quarterly the first year, then it is based on the amount of sales you had. We file once a year now. If you don't know what yo should do, you can call them and the answers you get will be more accurate than any you get in the forums.

You should be able to find a lot of info on the official state website. Here's some Sales Tax Questions that you should to find the answers to so you're prepared:

A list of questions that will get you the general information you need to know about your state’s sales tax laws.
www.gotogreatpanes.com/blog/2008/06/26/sales-tax-questions

Posted at 4:06am May 12, 2009 EDT

GoTo says

Here's the Georgia Deptartment of Revenus site--they have sales tax info for you:

etax.dor.ga.gov/BusTax_SalesTax.aspx

Posted at 4:08am May 12, 2009 EDT

Oh Gee, what Was I telling you.. GoTo is right it is not the IRS... I m ust have had a brain freeze i guess i should have been sleeping rather than trying to help at 3am... But I don't understand what shes saying about not adding tax on to the purchase... I think she is saying in some states, you can't add the tax into the price of the purchase... in other words the item is priced 30.00, when your customer buys it you say tax is included, or say I'll pay the tax for you.. Alot of people do that at shows, weather or not that is legal in Fl I do not know, but I don't think it should be done like that anyway.... hope I did not confuse you more and glad GOTO CAUGHT THAT

Posted at 2:49pm May 12, 2009 EDT

GoTo says

We've all done our fair share of zombie typing EarthyElegantJewelry!


"It is not legal in every state to add the sales tax to the purchase price, nor to pay it for your buyers."

What I meant was adding it to the item price (rather than charging it separately) is not allowed in all states. Basically, not everyone can just go with tax included.


In some states "tax included" is not allowed, some states allow you to include tax and so long as you don't advertise it as included, some allow you to include it but you must break it down for the customer if you give them a written receipt...

Posted at 2:58pm May 12, 2009 EDT

LaurieRyan says

what I do is I have statement books and I write up a receipt with the total and then add the sales tax afterwards, which is how we are supposed to do things in VA

Posted at 3:00pm May 12, 2009 EDT

thats pretty much the way I do it too, and feel that real is the most up and up way, no matter what the law is... While i'm sure this is not always the case, i often get the feeling that people who say it is included in the price are not really paying it. plus it makes it a little harder for those of us who are collecting it. I often hear , well, no one else is charging it. It is easy to make the customer understand but still..

Posted at 3:27pm May 12, 2009 EDT

Thanks GOTO for understanding my zombie typing... Now I don't feel like such a idiot..LOL

Posted at 3:29pm May 12, 2009 EDT

GoTo says

We total up the order then add the tax too. We've had few complaints about the sales tax but we explain we're just keeping it legal and most folks seem ok with that.

We always give a written receipt for our sales, and in NY you have to break the price and the sales tax down if you give a written receipt anyway, so that way just seems best all around. (Plus our prices don't seem 8% higher than they have to... :) )

Posted at 3:50pm May 12, 2009 EDT