Hello Everyone,
I am excited to have my first experience having a booth at an art fair this coming weekend. I will be using a 'Square' to accept credit cards for purchased work. My question is, how do you handle tax? Should I include tax which is set by a combination of state and the local municipality? Or should I set the tax rate of where I live? Thanks for your help!
-Scott
Replies
Show directors should give you the tax rate, and information on how to file your sales tax for that state. If a form is necessary, the director should either give you the form, or let you know how to download it. Virginia varies by city, but in Norfolk it's 6%. 1% of that stays in the city, which is why Norfolk loves Art Shows!
Collect tax based on where the show is. When I price my crafts I mark it high enough to include sales tax. That way I don't have to fiddle with a calculator or cash register. I am dealing with strictly dollars and no cents. Then I just take my total for the show and back out the tax.
Each show location should inform you about what % to collect. You can set up multiple tax amounts in the settings of the Square and activate the one you use at the time..
You collect the tax for where the show is. That is the "Physical location" of your business at that time.