We are a very small corporation in Washington state trying to make heads or tails of our quarterly reporting...Learn as you go kind of thing. We aren't sure about the sales tax guidelines on refundable deposits, rental fees and shipping charges. Please let me know if you have any information that could help. Thank you!
2007-04-19 05:54:57 · 2 answers · asked by BMXRated 1 in Business & Finance ➔ Taxes ➔ United States
Deposits etc for income tax purposes are not considered income, but rather a liability, if you are an accrual basis taxpayer.
But the rules are very different for sales tax purposes. Check with your state department of revenue for specifics. They will be able to give you some guidance. make sure you get the name of the person you speak with, their phone number and document it all as reference for the future.
2007-04-19 06:21:43 · answer #1 · answered by extra_37 4 · 0⤊ 0⤋
Normally you'd charge the sales tax on the deposit and then refund it along with the deposit when the item is returned.
2007-04-19 06:26:40 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋