Posts Tagged ‘california’
Sales And Use Tax California
Sales And Use Tax California
Question: instructions filling out state,local and district sales and use Tax Return?
I live in California and attempting to fill out the state,local and district sales and use Tax Return.
In box 1 it’s asking for the total gross sales.
Should I include all sales or only sales that were made within California.
example: total sales = $100
out of the $100 only $20 were sold to customers living in Calif.
The other sales were sold to customers outside of Calif.
Do I report $20 in box 1 ? or $100
Answer: You report gross sales on line 1. You can take a deduction for sales that were shipped to other states on line 8, “Sales in Interstate or Foreign Commerce”. This line is on page 2 of the regular form and page 1 of the short form. That way you only pay taxes on the $20.
Remember to keep shipping documents to support your sales in interstate commerce.
Avoiding Common Sales and Use Tax Problems – Pt. 2