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Help! How do I apply sales tax to an in-store purchased print I intend to drop ship?

I run a print Gallery in Fairbanks, Alaska. All transactions are conducted IN-STORE via the Square app / ipad. I need to be able to apply sales tax ONLY to prints purchased in-store that will be drop-shipped (we would order directly from a lab and then the print is shipped from them to the client) so that our business is not eating the cost of sales tax to VA or elsewhere.

 

How do I set up sales tax in Square JUST for pieces that will be drop shipped? This problem is less than 1% of our sales, and every time we do this, the print is sent to a different zip code, so putting in a generic sales tax number seems disingenuous.

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HI,

 

Customer purchase in store (customer sales tax Alaska). 

 

You purchase from supplier (you sales tax).

 

item is shipped to customer.   

 

Nothing more is needed.

 

 

Hope This Helps!
TERRI
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Square Champion

@ArcticFlair ;

What you could do is if the purchase is made in Store charge them your Sales tax like normal, and ask your lab if they can tax exempt you.  You would need to show you collect sales tax for the purchase in your state with a state licensed Sales tax ID.  This might help you not have to pay sales tax on the lab work.  I do this for our custom wedding candles.  I took my states sales tax ID to them, which they have on file, and when I need a picture smaller or larger or on different stock, I take it to them and do not get charged the sales tax. 

Or if you know what the sales tax would be you could add it to your customers price at time of purchase if you use the same labs all the time. 

 

I have a few items I drop ship, I sell the item either online or in store, sales tax is collected then, and when the item is shipped from the drop shipper I pay no taxes because I sent them my Sales Tax information for my state and I already collected it or did not have to collect it because of my state laws.  

Keith
Owner
Pocono Candle

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