Streamline Your Booth Cash and Carry with a Personal Inventory Order

[NooraK]

For those of you who have cash and carry items at your booths, how do you collect these items? I've seen some post that they use FPV they've earned from shows they've hosted, and I've seen mention about supply order etc.

I know the official way to do it is through a Personal Inventory Order. One of my concerns over doing it any other way is that I would not be paying the correct amount of sales tax on the items. If I order through supply order, for example, I'd only be paying sales tax on my cost, not the retail cost which is what the state would require. I know it's probably not something most people are concerned with, but it's something that came to mind while I was contemplating whether to do C&C in the first place.

 

[wadesgirl]

I personally only sell things I have on hand or used items that I need to get rid of. I've never ordered anything to sell before, that it technically not what our business is about.

 

[Jolie_Paradoxe]

I know the official way to do it is through a Personal Inventory Order.

One of my concerns over doing it any other way is that I would not be paying the correct amount of sales tax on the items.

Technically, there is no official way because we aren't supposed to be doing that.

Whether it's FPV or a supply order, sales tax is still not being properly paid. No tax on FPV.

I haven't done cash & carry as I'm too lazy and never know what people will want! lol

 

[JackieB999]

I believe since PC is the entity that collects the sales tax, that once we pay them for our order (whatever kind of order it was)... that the tax is paid when you receive it. Therefore, no further tax is needed because that would be double taxation.

I also believe that even when PC gives us or the hosts our discounts - that they charge tax on the full product value. Just like in a restaurant... if you have a coupon, you still pay tax on the original amount.

I wouldn't worry too much about it.... PC takes care of the taxes and I'm sure they charge us correctly even for FPV. Just make sure your customers at the booth know that the tax is already included in the price.

 

[BethCooks4U]

I believe since PC is the entity that collects the sales tax, that once we pay them for our order (whatever kind of order it was)... that the tax is paid when you receive it. Therefore, no further tax is needed because that would be double taxation.

I also believe that even when PC gives us or the hosts our discounts - that they charge tax on the full product value. Just like in a restaurant... if you have a coupon, you still pay tax on the original amount.

I wouldn't worry too much about it.... PC takes care of the taxes and I'm sure they charge us correctly even for FPV. Just make sure your customers at the booth know that the tax is already included in the price.

Not true. A host does not pay tax on her free products. She only pays tax on the amount she paid. Same for us. When we get discounted products we pay tax only on the part we pay for.

Host with a $500 show. $90 FREE; 2 half price items, 1 60% off item, then 25% off everything else. Say she gets her free products and for half price she picks a RUFTH trivet and a wine bottle opener and forgoes the other benefits. She spends $6.50 for the trivet and $10 for the wine bottle opener for a total of $16.50 out of pocket. She only pays tax on the $16.50 - the rest is FREE.

It is possible that PC pays tax on the retail value but I highly doubt it.

Also, I have bought things on sale at lots of stores and always just pay tax on what I spend, not the "retail" cost.

 

[JackieB999]

Not true. A host does not pay tax on her free products. She only pays tax on the amount she paid. Same for us. When we get discounted products we pay tax only on the part we pay for.

Host with a $500 show. $90 FREE; 2 half price items, 1 60% off item, then 25% off everything else. Say she gets her free products and for half price she picks a RUFTH trivet and a wine bottle opener and forgoes the other benefits. She spends $6.50 for the trivet and $10 for the wine bottle opener for a total of $16.50 out of pocket. She only pays tax on the $16.50 - the rest is FREE.

It is possible that PC pays tax on the retail value but I highly doubt it.

Also, I have bought things on sale at lots of stores and always just pay tax on what I spend, not the "retail" cost.

Then it must be legal to not charge tax for free items. PC takes care of all that. We do not need to collect ANY sales tax beyond what they charge us or it's double taxation. We don't even have tax ID numbers because we don't need them.

 

[BethCooks4U]

Then it must be legal to not charge tax for free items. PC takes care of all that. We do not need to collect ANY sales tax beyond what they charge us or it's double taxation.

I agree that we should not charge tax on things we have already paid tax on. However if you sell something that you are going to replace by purchasing at full price someone will pay the tax so passing it onto the customer would not be wrong. Personally I do not do cash and carry except Seasons Bests and such and I do not charge tax.

 

[Jolie_Paradoxe]

I don't think Noora was worried about having to pay taxes on the items. I think she was trying to be sure that taxes were paid properly when the order was made.

I say use FPV and host discount to order Ms. Noora. Save yourself some money, boost your monthly sales and commission while collecting what you'd like to have on hand. Hosting a show is within the guidelines. Just like you order your holiday gifts for friends and family.

 

[JackieB999]

That's why I said to tell the booth customer that the tax is included in the price. But never tell a booth customer buying C&C that it's $20 plus tax!

Again... we aren't issued Tax ID numbers because we don't need them and it would be illegal to charge tax on something when you don't have the means to report it to the state.

 

[BethCooks4U]

Jackie, no one is arguing that point. We are in agreement.

Laurie, I don't think the discussion about tax is aimed at Noora - it's just a thread of discussion trailing off the subject.

 

[JackieB999]

...Whether it's FPV or a supply order, sales tax is still not being properly paid. No tax on FPV....

This is what I was responding too ladies. PC knows what needs to be taxed. It's out of our hands.

 

[Jolie_Paradoxe]

For those of you who have cash and carry items at your booths, how do you collect these items? I've seen some post that they use FPV they've earned from shows they've hosted, and I've seen mention about supply order etc.

I know the official way to do it is through a Personal Inventory Order. One of my concerns over doing it any other way is that I would not be paying the correct amount of sales tax on the items. If I order through supply order, for example, I'd only be paying sales tax on my cost, not the retail cost which is what the state would require. I know it's probably not something most people are concerned with, but it's something that came to mind while I was contemplating whether to do C&C in the first place.

This is what I was responding too ladies. PC knows what needs to be taxed. It's out of our hands.

I was trying to lead it back to Noora's original question where she was concerned about taxes.

Jackie - I was referring to her concern about whether tax would not be paid if she ordered one way vs. the other. I didn't explain myself clearly I guess. I meant that if she ordered through supply for less or whether it was through FPV, it was at a discount and taxes were avoided on the discount. That either way, we (the host/consultant) did not pay tax and hence it was a bit of a moot point. Yes, the company takes care of the taxes and she shouldn't worry that there was a discrepancy or dishonest gesture on her part.

 

[NooraK]

Technically, there is no official way because we aren't supposed to be doing that.

Actually, that's exactly what the Policy Guide advises consultants to do if they need products on hand for fairs and festivals.

It is possible that PC pays tax on the retail value but I highly doubt it.

I've always been under the impression that HO pays it. If it was not required to pay tax on free products, why would other companies charge it to their hosts?

I agree that we should not charge tax on things we have already paid tax on. However if you sell something that you are going to replace by purchasing at full price someone will pay the tax so passing it onto the customer would not be wrong. Personally I do not do cash and carry except Seasons Bests and such and I do not charge tax.

I would not separately charge tax on the items. I would determine a price which was enough to cover my cost for tax and shipping. If it was a SBRC and I got a little less profit when I charge the dollar, then so be it.

I don't think Noora was worried about having to pay taxes on the items. I think she was trying to be sure that taxes were paid properly when the order was made.

This is what I was responding too ladies. PC knows what needs to be taxed. It's out of our hands.

I was trying to lead it back to Noora's original question where she was concerned about taxes.

Jackie - I was referring to her concern about whether tax would not be paid if she ordered one way vs. the other. I didn't explain myself clearly I guess. I meant that if she ordered through supply for less or whether it was through FPV, it was at a discount and taxes were avoided on the discount. That either way, we (the host/consultant) did not pay tax and hence it was a bit of a moot point. Yes, the company takes care of the taxes and she shouldn't worry that there was a discrepancy or dishonest gesture on her part.

Yes, HO knows what needs to be taxed. But if we don't put the order in the proper way, then the tax isn't counted the right way. If I order a SBRC at a 20% discount, the tax is being paid on 80 cents. If I then sell it to a customer for $1, tax is due on $1. That's why on the Personal Inventory Order the directions instruct you to calculate the sales tax on the full retail value of the products.

I know it's a little thing, but it's something I was wondering about. I am hosting a show on Saturday, and I was thinking about using some of the FPV to get small things like SBRC, Mini Serving Spatulas and some spices. Nothing big, under $5 items, preferrably things I could then use in my kitchen or at my shows later if I don't sell them.

 

[JackieB999]

I wouldn't worry about it Noora... if you buy something at a discount and sell it at retail price then there is a tax difference, yes, but I don't think tax police are going to be checking you.

As long as you're not collecting any ADDITIONAL tax, you'll be fine. And we're all in it to make money... not to buy at retail and sell at retail. There has to be a profit margin, right?