Collecting Sales Tax on Additional Charges
Question: How can I find out if I have to collect sales taxes on additional charges such as screen charges and freight?
Answer: Contact your CPA or the Department of Revenue for your state because sales tax varies by state, and sometimes by county. It is most likely that these extra charges are subject to sales tax, but that is not always the case.
Check your settings for taxable and non-taxable items and correct them if necessary. This is one of the first areas that would be examined if you are audited.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of “Ask the Accountant.”
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.