Hey everyone, I recently got my business license, and home inspections back in April. I am now starting to get cakes that want delivery. I live in Virginia, and don't know if this is applicable per state. Do I only add sales tax to the cake, or do I add the cake and delivery fee together and then tax that whole amount? What do you all do?
Michele
In KS I don't have to, it's similar to a fuel surcharge. When I total up a wedding cake order, I add the cakes, bride's, groom's, sheets, etc. to get one number and then multiply my sales tax from there. It makes it easier to keep everything straight. Definately check, I'm sure every state is different! -Lori
Hey Michelle! I'm also in Virginia Beach!
There is a great seminar on taxes (both state and federal) given by the Small Business Development Center in Hampton (I think there is also a Chesapeake location).. $10 for 8 eight hours of scary information. I can give you their number if you would like.
anyway- retail sales tax only applies to tangible goods.. so no, delivery fees are not taxed.
40.00 cake, plus 10.00 delivery fee is 52.00.
(and - as a home based business confectioner's business we are considered a retail operation - not food or catering... so there are several other taxes we have to pay besides retail- like a litter tax)
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