First Show Success - Until I Learned Iowa S&H Tax Rules!

[MomToEli]

Okay - had my first show last night. I'm a good, coachable little recruit, so I made sure that I charged tax on the S&H, just like my director did at my show ... I even went back to a couple of orders I have to deliver yet from my own show (folks not been available) and sure enough - taxed. One was an outside order that she did a computer printed receipt for, and she has a separate line item for S&H tax.

Well, I start entering my orders into P3 this morning and S&H is NOT taxable in Iowa.

Sigh.

Do I refund $0.24 to everyone who wrote a check and simply make sure the correct amount is charged on people's charge cards?

 

[raebates]

You poor thing. And you were so diligent!

Any order that was rounded up, I wouldn't worry about. Consider the extra .24 additional donation. I would correct the amount for the credit cards. As for the people who wrote checks or paid with cash, I'd call. I would let them know that you can refund that amount or they can consider it a RoundUp from the Heart donation. Most people won't worry about 24 cents.

If they want it back, I'd put it in envelopes and attach it to the sales receipts (if you haven't given them to the host yet) or simply give them to the host for distribution.

 

[Admin Greg]

Or do I just eat the $0.24 per order and chalk it up to a learning experience?(As an aside - do you know what the tax rate is for S&H in Iowa, because I don't! LOL!)It's always better to be safe than sorry when it comes to taxes. In this case, since you already charged tax on the S&H, it would be best to refund the $0.24 to your customers and make sure the correct amount is charged going forward. It may seem like a small amount, but it's important to follow the correct tax laws to avoid any issues in the future.As for the tax rate for S&H in Iowa, it appears that it is not taxable. The Iowa Department of Revenue's website states that "delivery or shipping charges are not taxable when separately stated on the invoice." So it seems like you can simply charge the correct amount for your products and not have to worry about taxing the S&H.