Hi, I've just started my business as distributor and have confused about what should I do...
I prepared my list with wholesale prices. I calculate shipping, duty, profit, etc. I would like to offer these prices as final that already included taxes. However, my husband thinks that it can be suspecious for some people, they do not like it and think that this is illegal...

any advices, please

I do not think it is suspicious at all. But for the most part - if you are in Washington State, do you need to actually charge sales taxes to Arizona residents? That actually might be where it becomes tricky.

If you need an accountant, etc you might contact http://www.scgfs.com

Including these items in the total price isn't illegal. It is just a business decision on your part. Many businesses do this, particularly if they give away something free.

Actually, while not a lawyer, I do that that it does vary from state to state. Some states specifically make you show the sales tax as a seperate item, no matter what. Others, couldn't care less, as long as they get their pound of flesh.

But, if you are selling on the internet, you are only liable to collect taxes when shipping or delivering within your own state. Sales shipped elsewhere, even if ordered in your state, are not subject to sales tax. So, by including sales tax in your regular price, you would be raising the selling price unnecessarily for folks in the other 49 states.

And you need to check with your own state's department of taxation, or whatever name it goes by, to find out wheter they allow bundling the tax into a final figure, or required it to be shown seperately.

Well the other thing is if you bundle sales tax and post that on your website then no matter what state they live in you will be required to pay sales tax to your state on each order, otherwise it would be fraud.

As you can see, there are different views on the subject. While some states technically may demand sales tax be listed separately, my experience is that they don't complain much as long as they are getting paid.

Internet businesses are not required to pay sales tax on transactions unless they occur in the jurisdiction of the business. For instance, if a California Internet site sells a product to a California residence, sales tax has to be collected. The Supreme Court, however, has ruled that the same business does not have to collect and pay sales tax for transactions with non-Calfornia residents. The Court found such a duty to be an inequitable burden on Internet businesses because each state requires different forms, etc.

To combat the above, many states now require the buyer to pay a "use" tax on products they purchase off the net. Cigarettes are the hot item of the moment. You can read a story here: http://www.thepost.ohiou.edu/N.php?a...N2&date=022805

You can also read more on the sales tax issue here:

http://public.findlaw.com/internet/n...E85DFF80B.html
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