I am trying to figure out what I need to do:
Do you add in your sales tax with your prices on your website OR do you tell your customers that the prices they see DO NOT include sales tax....but you must pay it, you are a business?
I have had a couple who were not aware that they needed to add in tax........DUH!
Which way seems to work better for you? Of course, I have to pay taxes! I am not doing this for just fun, rofl..........
I plan to post all prices with sales tax already added in because I want everything to end in $.00, $.25, $.50 or $.75. Also, I think people like knowing the "bottom line" price.
My state doesn't require food items to be taxed, but I would put a disclaimer on your pricing list that prices don't include applicable sales tax.
I started to say that I can't imagine people not knowing they have to pay sales tax, but then I remembered stories from hubby re: folks who bring a coupon into the dealership for a $29.99 oil change and they are "confused" on why it's $31.00+ due to sales tax. "But the coupon SAYS $29.99!"
All of my documents state "Subject to Indiana 6% Sales and 2% F&B taxes". It's also plastered all over the website.
Walmart adds sales tax; McDonalds adds sales tax; the local bakery adds sales tax. Why it would be a surprise to people is beyond me.
Some states have a law that you don't have to charge sales tax for items baked from home. I don't remember the wording exactly. But something to do with operating out of the home with a single oven, you don't have to charge sales tax. But if I had a double oven or a shop, I would have to.
You might want to check with an accountant to see what your state requires.
indydebi........honey, I am learning all about the general public, rofl.......they can be doozies!