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Including Sales Tax in Prices for an Online Store

Discussion in 'Business & Tax Advice' started by awtprod, Aug 28, 2011.

  1. awtprod

    awtprod Junior Member

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    I need to collect sales tax for Oklahoma (since that is the state that I reside in) but the software is being fussy and won't calculate sales tax correctly. I can't rectify the situation and I don't want to switch software, so I've decided to just subtract the sales tax from my profits for sales in Oklahoma. Does anyone else do this? How legitimate is that?
     
  2. eBayMafia

    eBayMafia BANNED BANNED

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    There are physical stores that do that. I would personally recommend you switch whatever software you are using. On the plus side, I doubt you have a lot of customers from your state.
     
  3. awtprod

    awtprod Junior Member

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    I've seen it before in physical stores, however, they are in one location and automatically charge sales tax. Online stores ship to locations in other states. I don't think it would be a problem if I included sales tax but I feel like I would be cheating customers in other states, no? I don't want to change software since I've invested a lot of time and money into it. Haha. Most of customers will be instate in the beginning due to the fact that I can market mostly for free that way.
     
  4. wowhaxor

    wowhaxor Executive VIP Premium Member

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    You're not cheating out of state customers. You're absorbing required taxes instate to stay competitive with out of state seller for them. I see no issue in doing things this way.
     
  5. awtprod

    awtprod Junior Member

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    Okay. Hopefully I won't have to use this shopping cart for too long and can move up to something better. Thanks!
     
  6. jonnyquest

    jonnyquest Regular Member

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    How are you going to pay the state taxes...monthly/quarterly?

    Does your state require a 'resellers permit"?

    JQ
     
  7. TapTapper

    TapTapper Junior Member

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    You should check into this site. They are part of a consortium that's supported by gov't at various levels to help business collect and pay online sales tax. If they don't have it they'll prob write it for you. They are very, very good.
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    TaxCloud.com
    I'm very surprised your cart won't do tax for you properly. I've managed 7 or 8 carts by now so feel free to send me a PM if you need help.
     
  8. awtprod

    awtprod Junior Member

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    It's monthly if you collect over $50? Otherwise, you report quarterly.

    Yes. Correct me if I'm wrong, but a reseller's permit if just a sales tax permit.

    It was doing it but Oklahoma has a different tax rate for every city in the state. Prestashop doesn't allow that many different rates. I looked up taxcloud. It looks awesome, however the integration for prestashop isn't finished yet. I can't PM you, so if you could PM me, that would be great!
     
  9. jonnyquest

    jonnyquest Regular Member

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    That is right in most states

    JQ