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43

Yes you can get in trouble. Here is the quote from the Bill of Sale form from California: This line is right above where you sign. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Other states are similar. Virginia uses more words: In accordance with all applicable ...


28

Can doing this get me in trouble later ? Or will it be just the buyer because its the buyers decision or idea ? Definitely can, and not just the buyer since you're signing this thing as well. This is what is called "tax fraud".


17

When I lived in Ohio, when you went to register a car that you'd bought private sale, they looked up the book value, and if you were some percentage below that, you had a choice of paying tax on the book value, or getting sworn notarized forms that this was the price you really paid, and if you were caught lying, you could go to jail. The one exception ...


16

From Amazon's Site: "If an item is subject to sales tax in the state to which the order is shipped, tax is generally calculated on the total selling price of each individual item." I'm going to trust a company of this size has this correct. Shipping address.


12

You can point out the following to the buyer when talking him out of trying to cheat on his taxes: As the buyer, the reward from the crime is so small and the penalties so high, it's simply not worth it. If you buy a $10,000 car for $1000, the DMV is going to immediately notice that fair market value wasn't paid and you'll get caught. If you try to wiggle ...


10

According to Wikipedia, the Illinois state sales tax (which is one component of the Chicago rate) can be different on different types of goods (e.g., groceries vs prepared food). It is left as an exercise to the reader to determine whether some particular combination of goods could be purchased under different tax rates so that the total comes to $20.17.


9

Apparently it's based on either the address of the seller or vendor or your shipping address; from the AccurateTax.com blog post Destination and Origin Based Sales Tax: ... a few states have laws that are origin-based, where products that are shipped to the customer are taxed based on the location of the business itself. As of this writing, these states ...


9

Of course. The rationale is exactly the same as always: profit is taxed. The fact that you use intermediate barter to make that profit is irrelevant. To clarify, as it seems that you think it makes a difference that no money "changed hands". Consider this situation: You produced item X, which cost you $100 to produce. You have 100 of those in stock....


8

Most states that have a "sales" tax actually have a sales and use tax. The sales tax covers the situation where you buy an item in state X and you use it in state X. The use tax covers the situation where you buy it in state Y and use it in state Z. State Z where you will be using it wants you to pay the use tax for the item. They do exempt you from the ...


8

The state income/sales tax deduction is an itemized deduction, located on Schedule A. If this taxpayer didn't have enough deductions, the software would have chosen the standard deduction instead. If this is the case, then it wouldn't matter if they change the amount of the sales tax paid, because with the standard deduction, it would have no effect. Take ...


7

What Chase told you is correct. You are paying for a big sales tax because the state of Ohio is assuming you bought the car in Ohio. Just fill out the form like they said and send it in. The Kentucky revenue web site says the following: Credit to New Residents of KY - When offering a vehicle for registration for the first time in Kentucky which was ...


7

In the United States the sales tax regulations are done by the state (though some sates do allow cities or counties to piggy back on those taxes). Regarding online sales, a vendor like Amazon maybe required to collect and forward to the state sales tax depending on: does the state tax online sales. does the state only require sales tax if the vendor has a ...


7

As it turns out, Talgov has a convoluted way it bills taxes which it doesn't explain on its bills or website. Its website claims to bill electricity at a rate of $7.59/month + $0.10522/kWh but, with taxes, it actually comes to $8.5631/month plus $0.11598/kWh. On top of the advertised rate, it bills a gross receipts tax of 2.56406%. It also bills a public ...


6

First - get a professional tax consultation with a NY-licensed CPA or EA. At what point do I need to worry about collecting sales taxes for the city and state of New York? Generally, from the beginning. See here for more information on NYS sales tax. At what point do I need to worry about record-keeping to report the income on my own taxes? From the ...


6

Don't worry about it. The State doesn't care about rounding error. All you need to do is say "We charge our prices with tax included" - you know, like carnivals and movie theaters. Then follow the procedures your state specifies for computing reportable tax. Quite likely it wants your pre-tax sales total for the reporting period. To get that, total up ...


6

It depends on the State law, but in most sales tax is applied before any discount by the merchant, but after manufacturer's discount. However, Groupon voucher in this case is not a discount, it is a credit, i.e.: form of payment. It doesn't affect the price. Thus the sales tax would apply to the whole amount ($20) and added to the total bill. You should be ...


5

What you are doing is barter trade. Most countries [if not all] would tax this on assumed fair value. There are instances where countries may relax this norm in border areas for a small amount. Barter is not just for gold – one can virtually do this for any goods, i.e. sell garments in exchange for oil, sell electronic chips in exchange for consumer ...


5

Either way is correct. The difference is simply due to rounding error; usually, 2.74125 rounds to 2.74, not 2.75. Mathematically, these methods are clearly equivalent: where t is the gross tax rate. The left-hand side is the first method, and the right-hand side is the second method. In the US, stores usually display prices without sales tax included. ...


5

FWIW, I've got a printed Amazon.ca invoice that was included in a shipment of books that I received in July, 2013. In the right-side side panel, at the bottom and in fine print, it reads: Amazon.com.ca, Inc. 410 Terry Avenue North Seattle, WA 98109-5210 GST Registration Number/No enregistrement TPS 85730 5932 RT0001 [etc.] If I view the same ...


5

If you sell through an intermediate who sets up the shop for you, odds are they collect and pay the sales tax for you. My experience is with publishing books through Amazon, where they definitely handle this for you. If you can find a retailer that will handle the tax implications, that might be a good reason to use them. It looks like Etsy uses a ...


5

Yes, software is considered a tangible good in NY State and if you are based in NY state, you are required to collect and remit sales tax from purchasers in NY state. The rate you would charge would depend on which sales tax jurisdiction the purchaser lives in, which makes compliance rather difficult. You could also just charge sales tax based on YOUR ...


5

In general you don't have to charge sales tax when you ship an item from your state to the customers state, unless you actually have a nexus in the customers state. In general it doesn't matter what your state tax law is, it is only based on the tax law where your locations are and do they include the state where that customer is having the product delivered....


5

The plumber will apply for and receive a refund of the amount of VAT he paid on the purchase amount. That's the cornerstone of how VAT works, as opposed to a sales tax. So for example: Pipe cost £15 to consumer -> £18 incl £3 VAT paid to the plumber Pipe cost £10 to plumber -> £12 incl £2 VAT paid to the supplier Pipe cost £5 to supplier -> £6 incl £1 VAT ...


5

The mechanism for paying income tax varies by business type, in general it's paid quarterly. Sales tax is separate regardless of business type. They collect sales tax from purchases and then send those collected sales taxes to the government(s). Sales tax is collected on sales, while income tax for the business requires profit to be made. So an ...


4

Tax is often calculated per item. Especially in the days of the internet, some items are taxable and some aren't, depending on the item and your nexus. I would recommend calculating and storing tax with each item, to account for these subtle differences. EDIT: Not sure why this was downvoted, if you don't believe me, you can always check with Amazon: ...


4

Your question can be generalized to address any significant changes in the tax code. The recent series of changes to the estate tax, for example, offered a year in which dying produced an unlimited exemption for your estate. 2010 will be remembered by tax geeks at "a good year to die." To the exact point you mention, home purchases. This isn't as simple a ...


4

Yes you do. You're under the jurisdiction of at least one country where you're resident, or where you're citizen. You may be under jurisdiction of more than one country. Each country has its own laws about what and how should be taxed and countries have treaties between them to resolve jurisdiction issues and double taxation situations, so you should talk ...


4

The procedure for rounding for sales tax is dictated by state law. Even if there are city sales taxes, it is generally governed by state law. Most jurisdictions dictate that the subtotal by tax type is done, then the rate applied. Never expect that the rounding will be down. The places that say they include sales tax in the prices are doing it to make ...


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