Charging Tax

Business By sundaybegonia Updated 27 Apr 2007 , 3:44am by lindav76

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sundaybegonia Posted 24 Apr 2007 , 10:30pm
post #1 of 13

How does everyone go about charging tax especially when you don't have a cash register.

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SweetConfectionsChef Posted 24 Apr 2007 , 10:52pm
post #2 of 13

Use a calculator....

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TastersDelight Posted 24 Apr 2007 , 11:02pm
post #3 of 13

I have worked my prices to include the sales tax, then at the end of the month I just figure it as close as I can, some months i lose a few pennies, other's I gain a few.

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mypastrychef Posted 25 Apr 2007 , 5:55am
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Quote:
Originally Posted by sundaybegonia

How does everyone go about charging tax especially when you don't have a cash register.




I don't have a cash register, and I add tax to each order, I use the calculator.
I deposit all my funds into the bank and at the end of the month I know exactly how much went in and I can figure the sales tax from looking at the months deposit record. Well my accountant actually figures it. thumbs_up.gif
mpc

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sundaybegonia Posted 25 Apr 2007 , 1:15pm
post #5 of 13

Thanks Guys,

That is pretty much what I had thought. What I thought about doing was say my cake was $40.00 and our tax is 8% (3.20) then I would charge my client $44.00 and just keep track of my tax. Does that sound right?

And by the way I had figured on using a calculator.

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takersgirl Posted 25 Apr 2007 , 8:19pm
post #6 of 13

i live in pa and my health inspector said becasue i have an in home bakery, and don't sell individual products that i don't have to charge sales tax. he said if i was selling one cookies or one piece of cake that was different, but since it is a tray of cookies or a whole cake i don't need to. saves me a lot of work.

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indydebi Posted 25 Apr 2007 , 10:06pm
post #7 of 13
Quote:
Originally Posted by sundaybegonia

Thanks Guys,

That is pretty much what I had thought. What I thought about doing was say my cake was $40.00 and our tax is 8% (3.20) then I would charge my client $44.00 and just keep track of my tax. Does that sound right?

And by the way I had figured on using a calculator.




When you keep your own books, tho', you need to know how much of that price was sales and how much was sales tax. It's your sales number that you use as income for your business. You are just an agent collecting the sales tax for the govt ... it's a pass-thru transaction.

So don't record your sales as "$44.00" .... your actual sale is "40.80" (44.00 less 3.20)

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sheila06 Posted 26 Apr 2007 , 2:48am
post #8 of 13

Just charge the tax on the actual sale ($40.00) if you logged your sales into your books at $40.80 then you would owe sales tax on that extra $.80 which would be $.07. so your total sales tax on $40.80 would be $3.27.....???? am I confusing you???
It's just easier to charge your price and then the sales tax on the price of sale.

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sundaybegonia Posted 26 Apr 2007 , 1:59pm
post #9 of 13

Thanks Sheila & Indydebi,

That was what I thought glad to know I was following the right line.

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onceuponacake Posted 26 Apr 2007 , 2:06pm
post #10 of 13

itmust vary from state to state because we were told we had to charge sales tax and i use a calculator too and incorporate it into the price

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playingwithsugar Posted 26 Apr 2007 , 2:11pm
post #11 of 13

Just an FYI - There is no sales tax on one cookie or one piece of cake in PA, unless it is served in a restaurant, cafe, coffee shop, etc. If I were to open a bakery and sell individual slices for home consumption, there is no sales tax. I do not know if this applies to wedding cakes, as the bake shop I worked in did not sell them (the owners brought in products from New York City).

If you charge a flat $44 for the item, you would then be responsible for the tax on the entire $44, instead of $40, in an audit. That is why the sales tax line is always a sales tax line below the subtotal.

Theresa icon_smile.gif

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kelleym Posted 26 Apr 2007 , 5:52pm
post #12 of 13

Check with your state's taxing authority (in Texas it is the Comptroller's Office). In Texas there is no sales tax on bakery items including whole cakes -- so I say YAY!! to whoever pushed that through the legislature. icon_cool.gif

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lindav76 Posted 27 Apr 2007 , 3:44am
post #13 of 13

i asked a person in the comptrollers office he said a whole cake is non taxable but if you would serve or sell a slice of cake with a fork and the little plate, its taxable

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