How do you charge sales tax?

How do I charge sales tax?

asked almost 8 years ago

1 Answer

Go to the bottom of the settings on the following [URL removed]

https://www.bonanza.com/booths/dobiesupply/edit_payment << everybody else, substitute your user name in place of dobiesupply

Find the Tax Rules setting. There, you can set up tax rates for different states. If a city in that state also charges tax, you can enter the zip code for that city and apply the higher (combined state+city) tax rate.

You can have multiple tax rates, but only use them if you are required to charge sales tax. That usually means the state YOU reside in (if you have a sales tax license). If you have an office/store (unlikely for individual sellers) in another state, you should also be collecting those taxes.

Unless the government gets around to changing interstate rules about collecting sales taxes from all online sales, I wouldn’t try to collect taxes for states you don’t reside in. Let the buyer report and pay those sales taxes on their own income tax returns (though many won’t, but that’s not your problem).

Of course, it goes without saying that any taxes you do collect have to be forwarded to that state’s treasury office.

answered almost 8 years ago

tomwayne1
Reputation: 8637
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