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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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32 votes
6 answers
345k 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 ...
punekr12's user avatar
  • 431
14 votes
2 answers
5k 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 ...
Dmitry's user avatar
  • 251
13 votes
5 answers
57k 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 ...
Bryson's user avatar
  • 399
11 votes
4 answers
30k 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 ...
Dylan Nissley's user avatar
10 votes
9 answers
22k views

What's the cheapest way to buy out a sibling's share of our parents house if I have no cash and want to pay less than the appraised value?

My mother passed away, leaving 75% of her house to me and 25% to my sister, setting this up as a trust. The house was appraised at $944K, based on the time of my mother's death (November 2022). I want ...
user1186050's user avatar
9 votes
3 answers
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 $...
Brian David Berman's user avatar
8 votes
4 answers
14k 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,...
anonymous's user avatar
7 votes
3 answers
40k 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?
Giablo's user avatar
  • 1,410
7 votes
1 answer
326 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?
Zephyr's user avatar
  • 6,230
6 votes
2 answers
4k 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 ...
Luke's user avatar
  • 201
6 votes
1 answer
688 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 ...
Zephyr's user avatar
  • 6,230
5 votes
3 answers
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?
vi.su.'s user avatar
  • 193
5 votes
2 answers
597 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 ...
user avatar
5 votes
3 answers
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 ...
Chris W. Rea's user avatar
  • 31.7k
5 votes
2 answers
7k 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 ...
daleyjem's user avatar
  • 153
5 votes
3 answers
2k 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 ...
Patoshi パトシ's user avatar
5 votes
0 answers
4k 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 ...
NotInControl's user avatar
4 votes
3 answers
3k 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 ...
Arian Faurtosh's user avatar
4 votes
2 answers
311 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)?
Elijah Wood's user avatar
4 votes
2 answers
261 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 ...
Pvo's user avatar
  • 381
4 votes
2 answers
402 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 ...
Five Bagger's user avatar
  • 9,785
4 votes
1 answer
65 views

Sales tax on inventory consumed during R&D

I'm considering setting up a sole proprietorship to sell kits (electronics and crafting) that I design. It's my understanding that, in most cases, I would be able to get a exemption certificate that ...
Adrian McCarthy's user avatar
4 votes
1 answer
3k 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 ?
guru's user avatar
  • 205
4 votes
1 answer
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?
user avatar
4 votes
2 answers
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?
Zephyr's user avatar
  • 6,230
4 votes
1 answer
159 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 ...
Liam's user avatar
  • 1,096
4 votes
1 answer
3k 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 ...
NL - Apologize to Monica's user avatar
4 votes
0 answers
92 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 ...
P.Brian.Mackey's user avatar
4 votes
0 answers
663 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?
Caryl Karel's user avatar
3 votes
2 answers
865 views

Is it correct to charge sales tax on fee imposed by car-rental company?

On what amount should local and state taxes be computed, on the base rental price alone or after having added to it all the rental company-imposed fees? In other words, does one need to pay taxes on ...
MarcoD's user avatar
  • 143
3 votes
2 answers
161 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% ...
Lori Narvaez's user avatar
3 votes
1 answer
6k 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 ...
user37046's user avatar
3 votes
2 answers
12k 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 ...
fastfinge's user avatar
3 votes
1 answer
2k views

Does credit card cash back count taxes?

If I have a 1% cash back card and spend $100 plus $6 sales tax, do I get $1 cash back or $1.06 cash back?
user avatar
3 votes
1 answer
2k 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 ...
AlexVPerl's user avatar
  • 225
3 votes
1 answer
193 views

I am an IL resident and will move to MA next month. I need to buy a new car in IL for the moving. How do I pay lower sales tax?

I am current living in Illinois and will move to Massachusetts next month. I already have a valid lease with MA address but my driver license is still the IL one. My IL sales tax is 8.25% and MA sales ...
Harper's user avatar
  • 133
3 votes
3 answers
561 views

How do you pay other countries' sales taxes when selling internationally?

All OECD countries have a broadly based consumption tax of varying rates: They go under different names, for example, in Australia it's the 'Goods and Services Tax (GST)', and in Denmark it's the '...
stevec's user avatar
  • 557
3 votes
1 answer
438 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 ...
Karnivaurus's user avatar
3 votes
1 answer
492 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....
Chris Mueller's user avatar
3 votes
1 answer
4k 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 ...
Larry Wang's user avatar
  • 1,128
3 votes
1 answer
550 views

Are Colorado Cash Back payments taxable as federal income?

In 2022, the state of Colorado issued a special $750 "tax refund" payment, popularly called "Colorado Cash Back", to every taxpayer in the state (pursuant to SB 22-233). It was ...
Nate Eldredge's user avatar
3 votes
1 answer
3k 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 ...
user379468's user avatar
2 votes
1 answer
615 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 ...
partyphysics's user avatar
2 votes
1 answer
204 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 ...
Numerical Person's user avatar
2 votes
2 answers
2k 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% (...
user avatar
2 votes
1 answer
10k 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 ...
Karnivaurus's user avatar
2 votes
3 answers
1k 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 ...
James M. Lay's user avatar
2 votes
2 answers
13k views

Do I have to collect sales tax when reselling used personal items?

I bought a new dehumidifier off of Amazon. I used it in my apartment for a month but don't need it anymore. I want to sell it used, at a price lower than the price I bought it for. I listed the item ...
ma11hew28's user avatar
  • 507
2 votes
1 answer
594 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 / ...
AlexVPerl's user avatar
  • 225
2 votes
1 answer
7k 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 ...
65mustang's user avatar