Questions tagged [sales-tax]

For questions relating to taxes collected on the sale of goods and services. In most cases, a country, region, or state/province tag should be included as well.

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29
votes
6answers
246k views

Sales tax “trick” while buying a used car; i.e. declaring sale at lower than actual transaction value?

I am selling my car and have found a potential buyer. After I transfer the vehicle ownership, the buyer will have to transfer the vehicle title to himself, and will also need to pay sales tax on the ...
13
votes
5answers
44k views

Is sales tax for online purchases based on billing- or shipping address?

My question is simply clarification: when I make a purchase online, is the sales tax applied based on my billing or shipping address? Possibly similar (possibly illegal?) but with no up-voted or ...
13
votes
2answers
4k views

How should I report earning from Apple App Store (from iTunes Connect) in Washington state?

Washington Department of Revenue requires to report all sales by Apple of my applications in the Washington state on my personal excise return. Then I must calculate sales tax and I should deduct the ...
9
votes
3answers
1k views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $...
9
votes
4answers
28k views

Sales Tax: Rounded Then Totaled or Totaled Then Rounded?

E.g. There is a sale with 3 items, each costing $1.00. Sales tax is 12.4%. In calculating the tax for each item, do I round the tax amount first and then total everything up? Like this: ITEM 1: $1.00 ...
7
votes
4answers
10k views

how do i get an out-of-state billing address for a credit card?

When I buy virtual items online that do not need to be shipped, sales tax is often calculated by the merchant automatically based on my credit card billing address. My billing address is in California,...
7
votes
3answers
39k views

When does Ontario's HST come into effect?

When does the HST become effective? Will all businesses start charging HST right away, and will it replace the 5% GST with a straight 13% tax for all services?
7
votes
1answer
304 views

How can I minimize the impact of the HST?

HST is being introduced in both Ontario (see this question) and B.C., does anyone have suggestions for how to reduce its impact on individuals?
6
votes
2answers
3k views

Do I have to pay Sales Tax on my leased car twice when moving from VA to FL?

I have a vehicle that I'm leasing and in the state of Virginia you pay sales tax on the full purchase price of the car when you are leasing. I have now moved to Florida and the lease company has ...
6
votes
1answer
636 views

How does a Value Added Tax (VAT) differ from a Sales Tax?

A common trend by many governments has been to introduce a Value Added Tax to replace a Sales Tax (as evidenced by the multitude of HST related questions on this site). How do these types of taxes ...
5
votes
3answers
2k views

Is buying or selling goods for gold or silver considered taxable?

Is buying / selling goods for gold / silver taxable? If yes, what's the rationale behind this?
5
votes
2answers
557 views

I'm thinking about selling some original artwork: when does the government start caring about sales tax and income tax and such?

I've been doing some lithographic printmaking as a hobby, and I'm considering selling some artwork I have produced using this process - possibly in person, possibly with an Etsy shop. I'm not sure to ...
5
votes
3answers
6k views

Travelled to New York State & bought something. Can I get sales tax refund back?

I drove to Buffalo, NY over the weekend with some friends, and I bought myself a shiny new Apple iPad. I had to pay New York State sales tax at the Apple Store, as well as declare my iPad purchase at ...
5
votes
2answers
5k views

Car lease payment went up after moving to new state

Recently, I moved to Kentucky from Ohio and my monthly auto lease payment with Chase Bank went up by about 8%. How is this possible if the tax difference between each state is only 0.5%? According to ...
5
votes
1answer
1k views

Ontario HST rebate: When would I qualify?

I turned 18 in January 2010 and I filed a 2009 income tax return. When will I qualify to receive the rebate?
5
votes
2answers
1k views

In NYC is there sales tax on services like computer / cell phone repair?

I run a small cell phone repair store and we fix many phones. Many times it's bricked phones or cracked screens. But what I want to know, do we have to charge sales tax on repair services such as ...
5
votes
0answers
3k views

NY State Sales Tax on Lease Transfer

I am hopeful that someone can help me understand New York State (NYS) Sales Tax with regards to a lease take over, in what seems to be paying tax twice. So here is the scenario: Person A leases a ...
4
votes
2answers
243 views

Charging sales tax for goods sold out of state?

Do I need to charge sales tax for goods sold in DC if I'm a florist based in Oregon (a no sales tax state)?
4
votes
2answers
221 views

Do businesses pay taxes in addition to sales taxes from customers or do they use sales taxes to pay their taxes? [closed]

Whenever we go to a store or supermarket we pay taxes on many products. Sometimes different products have different tax rates too, which makes things even more complicated. I was wondering if stores ...
4
votes
1answer
2k views

Do I need to collect GST/PST for providing software services to companies outside of Canada?

I have a corporation registered in BC, Canada. I provide custom software development services to companies outside of Canada. Do I need to collect GST/PST ?
4
votes
2answers
6k views

Ontario gas prices & HST: What will happen to prices at the pump on July 1, 2010?

When the HST comes into effect on July 1, 2010 will gas prices at the pump be affected immediately?
4
votes
1answer
122 views

Sales tax or Use tax

A sales tax is defined as "A sales tax is a consumption tax imposed by the government on the sale of goods and services"" A use tax is defined as "A sales tax on purchases made outside one's state of ...
4
votes
1answer
471 views

What value do I declare on the title transfer if I make an even trade?

I am considering trading a car to my friend in exchange for some livestock (of similar value). The car is worth $9000, and the livestock is worth closer to $11,000. What do I put in the sale price on ...
4
votes
0answers
84 views

Understanding Nexus as a small business owner

I'm interested in becoming a 3rd party Amazon FBA (fulfilled by Amazon) seller. I recently learned about a rule called "nexus". Basically, I understand I have nexus (tax liability) in the state ...
4
votes
0answers
343 views

What do codes “O”, “T”, “X”, and “N” mean on Wal-Mart receipts? [duplicate]

What do the four individual Walmart receipt codes of "O", "T", "X", and "N" denote?
3
votes
3answers
2k views

What is the optimal way to calculate tax: apply tax to each item, then sum the prices, or sum the prices, then apply tax? When are prices rounded?

What is the optimal way to calculate tax? Lets say tax is 7.5% or 0.075. $2.32 X 1.075 = 2.494 --> Rounded: $2.50 You can say that item is $2.50 (tax included) and if you have two items: $2.32 ...
3
votes
2answers
128 views

Sales tax on Food

I bought a prepared salad at Walmart today in Houston, Texas. I thought it a bit strange to pay tax on food, but I understand their reasoning. What was still confusing was that I was charged an 8.25% ...
3
votes
1answer
4k views

Taxes: buy wedding ring in Oregon, but ship to California

I am planning to buy an expensive wedding ring in Oregon to save on sales tax, and ship it home to California to then propose to the long-term girlfriend. If I showed up at a jewelry shop in Oregon ...
3
votes
2answers
9k views

Where to find Amazon Canada's GST/HST Number? Wasn't on invoice emailed to me

I have a small business registered to collect GST/HST. I purchased a product from Amazon.ca, and they charged me HST. However, the invoice they emailed me did not contain the HST/GST, or Business ...
3
votes
1answer
1k views

Sales Tax on Apps / Digital Goods in AppStore & GooglePlay, New York

I am trying to find if I need to charge sales tax with purchase of my app from the app store. I am in NY and most of my customers and buyers are from NY as well. I am not sure what NY regulations are ...
3
votes
2answers
232 views

Why was Kittery a shopping destination in the 1980s?

When I was a kid in the 1980s we used to go to Kittery Maine (from Massachusetts) for shopping expeditions and the explanation given was that there was no sales tax there. On looking at the history ...
3
votes
1answer
262 views

Plumber charging VAT on parking

I have a plumber do some work for me recently, and in the invoice he included the parking cost. This was for on-street parking, which I know has no VAT applied to it as it is a direct payment to the ...
3
votes
1answer
192 views

How to buy out one person's share of a jointly owned vehicle with the lowest taxes and fees

I currently own a car jointly with another person. We are both on the title and both on the current loan. Now I have reason to buy the other person's share of the vehicle so that I am the sole owner....
3
votes
1answer
3k views

Is sales tax charged on checked baggage fees?

When I buy airplane tickets online, I pay for associated taxes at the same time. But if I have luggage to check, that's a separate cost that gets added when I check in. Should I expect to pay ...
3
votes
1answer
2k views

Do classes have to pay sales tax on materials used?

My friend teaches flower classes, a portion of the total amount charged goes for materials and a portion goes for the actual teaching of the class. If a typical class costs someone $100, $50 of that ...
2
votes
1answer
298 views

Am I paying taxes on my electricity unnecessarily?

I live in Tallahassee, Florida where everyone gets their electricity from Talgov. I recently looked at my utility bills and realized my electricity charges were about 10-11% larger each month than I ...
2
votes
1answer
84 views

Tax on online shopping vs shopping from physical store

I have been purchasing products from Amazon in the US. What I see that they don't charge any taxes when I purchase. Recently I purchased a product from BestBuy that had sales tax and I got the same ...
2
votes
2answers
1k views

Sales taxes on Groupons or LivingSocial coupons?

Say I buy a $10 Groupon that lets me buy $20 worth of food at a restaurant. I go to the restaurant and order items that add up precisely to $20 (based on the menu price). If the state sales tax is 6% (...
2
votes
1answer
4k views

Is VAT applied when a tradesman charges for materials?

I have been employing a plumber to do some work in my bathroom, and recently received the invoice. This consists of a charge for the labour, plus a list of materials used for the job, which he is also ...
2
votes
3answers
720 views

Why charge gross receipts taxes to the customer?

I live in New Mexico where we have "gross receipts tax", and there's a notion that this tax is "charged to the customer". For instance, when I see a TV that is on sale for $100, I'll really end up ...
2
votes
1answer
522 views

Freemium Model In-App Purchases Sales Tax

Sales tax for paid apps is somewhat well defined depending on state tax code, things like downloadable or boxed software seem to be covered, and most states will require a sales tax for sold / ...
2
votes
1answer
5k views

Why is sales tax collected again when selling a used vehicle (or any selling any item multiple times)? [closed]

Why is sales tax charged on a used vehicle purchased from an individual? When a vehicle is purchased new the sales tax is paid on it at that point. If I, as an individual, sell the vehicle later, I ...
2
votes
2answers
134 views

Accounts Receivable included in Gross Sales?

I am trying to determine my sales tax. In a given quarter, let's say I close a deal for $2000 and collect $500 as a deposit. Which number is considered in my "Gross Sales", the $2000 or the $500? ...
2
votes
1answer
51 views

Income Tax Paypal / Ebay sales (Australia) limits

Work were throwing away a bunch of boxes full of e-waste and I was able to take them for free. I have started selling the items on Ebay and getting paid through Paypal. I believe the max total ...
2
votes
1answer
117 views

100% Ownership and 30% profit to sale director

I am seeking understanding. I 100% own a new service-based tech company. My business is registered as an LLC. I am about to launch and I seek to make sales, yet I don't have the resources to pay staff ...
2
votes
2answers
309 views

How to deal with PA sales tax for item bought on behalf of my customer and resold to them?

I work for myself and at times buy a piece of software or something for someone I am working for. Like my title says, I live and work for people in PA. If I pass the product on to my customer at ...
2
votes
1answer
127 views

When does the HST impact pre-purchased services in Ontario? [Canada]

Some services will be impacted earlier than July 1, 2010. What services are impacted and what date does the full 13% get charged?
2
votes
1answer
360 views

Legal issues for selling software for a student on F-1 visa [closed]

A friend of mine is going to sell subscriptions for a SAAS software and he is on F-1 student visa as a non-resident alien. I have got a couple questions about legal issues: Does he need to form an ...
2
votes
1answer
67 views

Recognizing the revenue on when virtual 'credits' are purchased as opposed to used [closed]

I have an application where the user pays for access with credits he or she buys up front, at $10 each. Let's say the user buys 100 credits for $1000 on January 1st. The credits expire 1 year later. ...
2
votes
2answers
140 views

How are app sales/acquisitions taxed in the US?

Hypothetical scenario: I identify a gap in a company's product offering. I, as an independent developer, write a desktop, web, or mobile application that bridges this gap, and I contact the company in ...