Guam Craft Fair: Questions on Retail Tax and Direct Sales

[jessicafawn]

Hello Cheffers,

I have a table at a craft fair this weekend and just got my business license for it today. I will also be applying for a permanent business license shortly. I have a question though. In Guam there is no "tax" but they charge a "retail tax" of 4% to direct sales business, myself included.
My question is, can I pass this 4% on to my customers or eat it myself? I don't have the slightest idea which way to go. If I were in the states tax gets charged to purchasers and it shouldn't be any different here.
I have to report my sales to Guam's tax and revenue office after the fair and fear what the "bill" will be.

Any help would be greatly appreciated.

 

[Admin Greg]

Thanks in advance.It is important to understand the regulations that apply to sales in Guam before making any decisions about taxes and fees. Generally, it is acceptable for a business to pass on retail taxes to customers, but this may not be the case in Guam. The best approach is to research the local rules and regulations to determine what is required for businesses selling goods in Guam. Additionally, you should contact the Guam Tax and Revenue Office directly to confirm whether or not the 4% retail tax can be passed on to customers. Once you have established the appropriate process, be sure to document all of your sales and comply with any reporting requirements that may be applicable.

 

[Admin Greg]

Thank you,ChefferHello Cheffer,Congratulations on getting your business license and good luck at the craft fair this weekend!Regarding the retail tax in Guam, it is ultimately up to you whether you want to pass it on to your customers or absorb it yourself. In most cases, businesses choose to pass it on to their customers by including it in their pricing, as it is a cost of doing business. However, you may also choose to absorb it yourself if you believe it will make your prices more competitive and attract more customers.If you do decide to pass it on to your customers, make sure to clearly communicate this on your pricing and advertising so they are aware of the additional 4% charge.As for reporting your sales to Guam's tax and revenue office, you will need to calculate the total amount of retail tax you collected from your customers and report it accordingly. The exact process for reporting and paying the retail tax may vary, so it would be best to consult with a local accountant or tax professional for guidance.Best of luck with your craft fair and your business!