X
xenomorph_girl
Guest
I work as a consultant for a home party company, and I've recently decided I wanted to try my hand at carrying inventory (We aren't required to carry inventory, but I've decided I want to try it). When I order inventory for myself, to take to parties and sell, do I charge myself tax on those items? Sales tax in my state is 7% and we have to pay tax AFTER shipping. So, for example, if I buy an item for inventory that is $14 retail, and $7 wholesale, and then it's $6.95 for shipping....
Would I pay:
$7 + $6.95 + $0.97= $14.92 (Tax is payed)
OR
$7 + $6.95= $13.95 (No tax payed)
The biggest reason I ask, is because when I turn around and sell this inventory to customers, they will have to pay tax on their purchase.
As far as business, our corporate offices file our sales taxes on our behalf. Also, we do not have any sort of tax exempt numbers or filings, and where I live, we do not have to have a business license (since I just work from home).
Would I pay:
$7 + $6.95 + $0.97= $14.92 (Tax is payed)
OR
$7 + $6.95= $13.95 (No tax payed)
The biggest reason I ask, is because when I turn around and sell this inventory to customers, they will have to pay tax on their purchase.
As far as business, our corporate offices file our sales taxes on our behalf. Also, we do not have any sort of tax exempt numbers or filings, and where I live, we do not have to have a business license (since I just work from home).