How to set up an invoice for a sales tax audit
How to set up an invoice for a sales tax audit When issuing invoices to clients, it is imperative to break out the charges. For example, if you have shipping, installation, or even training charges, then, you must state it as such. Otherwise, the entire invoice will become taxable! Example 1: A poorly-written invoice Quantity […]
How to determine Nexus in Dropshipping
How to determine Nexus in Dropshipping: In a drop shipping setting, just keep in mind that there are 3 players: 1. Seller2. Dropshipper (distributor)3. Customer The general rule: Sales tax is collected at the end-state of the sale, where the customer resides. Note: If the Dropshipper has Nexus, but the Seller does not, then, the […]
Tire Shop Sales Tax Audit
Sales Tax Audit for Tire Shops The most common problem that we see on sales tax audits with tire shop pertain to these issues: 1. Bring your own part (BYOP)2. Resale certificates3. Purchases from eBay motors Bring your own part:If your customers are bringing in their own parts for you to simply install, then, it must be […]