Ny Bakers And Sales Tax - Help!

Business By jessieb578 Updated 23 Jun 2008 , 5:14pm by authress

jessieb578 Posted 20 Jun 2008 , 7:56pm
post #1 of 10

Ok, so I'm under the impression that if you strictly do cakes that you sell retail to be eaten only off premises that you do not charge sales tax.

So, I'm going to do my quarterly sales tax return and I'm finding that I'm confused. I have to report how much I made in sales but put zero as the amount owed??

I'm so confused....can someone else help??


9 replies
peg818 Posted 20 Jun 2008 , 8:09pm
post #2 of 10

i think you do need to pay sales tax, not sure as i don't have my own business.

jessieb578 Posted 20 Jun 2008 , 8:13pm
post #3 of 10

I thought the sales tax when you go in to eat somewhere was actually on the service, not the food. Like when you go to the store and certain foods aren't taxed.

harlemcakelady Posted 20 Jun 2008 , 8:21pm
post #4 of 10

Only food consumed on the premises is subject to sales tax. Look it up at the IRS website.

I don't have a sales tax license because I don't have a bakery where customers walk in and out and you are making or selling cakes by the slice to be consumed on the premises.

I filed my taxes and was fine.

jessieb578 Posted 20 Jun 2008 , 8:33pm
post #5 of 10

harlemcakelady - thanks so much for the confirmation, it was just strange to have to file the form and to put zero! Did you put on there what you made gross from your cakes as well? Do you file quarterly?? Is there a way to change it to annually.

Sorry for all of the questions. I spent a ton of time on the phone waiting for an answer and waht I found on the website wasn't the easiest to understand - then again, I'm tax illiterate!!

harlemcakelady Posted 20 Jun 2008 , 8:39pm
post #6 of 10

I'll look at my taxes again. I had an accountant do them for me.

I'm a sole Proprietor so I don;t have to file self employment tax. I still have a full time 9-5.

I do my taxes yearly.

QueenBee1 Posted 21 Jun 2008 , 4:00am
post #7 of 10

I am in Illinois, and I have the sales tax issue on my "to do" list to figure out soon. So far, my sales have all been wholesale, so I have been filling out the sales tax form with zeros. I was under the impression though that when I begin making retail sales I will have to charge and report state sales tax. I hope someone can help clear this up.

jessieb578 Posted 21 Jun 2008 , 4:01am
post #8 of 10

yearly huh?? hmmm, I'm a sole proprieter too. I'm def. going to have to talk to an accountant because I'm really not up for filing zero sales tax every 3 months!! It just seems ridiculous to me.

Petit-four Posted 21 Jun 2008 , 9:04pm
post #9 of 10

Jessieb758 -- I'm in NY, and my inspector saw my sales tax form, and told me, "yes, you'll likely be filing "zero" for a while." I just send mine in too -- here is the list of exempt items, it's called "Publication 880." If you call, ask them to clarify items on "880" and they will know what you mean.

Fudge is taxed, but marshmallows are not. icon_rolleyes.gif

Harlemcakelady is correct -- items consumed (like a coffeeshop or restaurant) are taxed, but the same item sold as a bakery, is not.

Hope this helps!

authress Posted 23 Jun 2008 , 5:14pm
post #10 of 10

Another important thing to remember is that you have to report purchases made by the business that you didn't pay sales tax on but should have. For example, I ordered a cake plateau and some pans--they came from out of state and I wasn't charged sales tax. You have to pay that icon_evil.gif with your quarterly report. Since I do mostly cakes but occasional candy, I've paid a lot more sales tax for purchases than sales!

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