{"id":2049,"date":"2015-05-14T18:05:54","date_gmt":"2015-05-15T01:05:54","guid":{"rendered":"http:\/\/sintelsystemspos.com\/?p=2049"},"modified":"2015-11-18T11:38:41","modified_gmt":"2015-11-18T19:38:41","slug":"sales-tax-time-calculated-tax-on-total-sales-dont-match-tax-collected","status":"publish","type":"post","link":"https:\/\/sintelsystemspos.com\/pt\/sales-tax-time-calculated-tax-on-total-sales-dont-match-tax-collected\/","title":{"rendered":"Sales Tax Time: Calculated Tax on Total Sales Don’t Match Tax Collected"},"content":{"rendered":"

Desculpe, este conte\u00fado s\u00f3 est\u00e1 dispon\u00edvel em English<\/a>. Por uma quest\u00e3o de conveni\u00eancia para o utilizador, o conte\u00fado \u00e9 mostrado abaixo no idioma alternativo. Pode clicar na liga\u00e7\u00e3o para alterar o idioma activo.<\/p>

\"\"<\/a><\/p>\n

A common confusion for new business owners at sales tax time is not being able to match the sales\/use tax collected versus the calculated sales tax based on total sales. There is a very good reason and solution for this.<\/p>\n

Let’s assume that your tax rate is 8.25% and you had $1,000 in sales. By applying 8.25% to $1,000 then your tax should be $82.50. However how does this change if you sold 1,000 $1 items?<\/p>\n

The tax on $1 at 8.25% is $0.0825, but we do not have $0.0825 monetary instruments, so the tax that is collected is $0.08. The tax is rounded down for numbers below $0.005 and rounded up for numbers above $0.005. So if the total with tax is $14.346, then the total becomes $14.35. Back to the example of 1,000 items at $1. Since $0.08 is collected each time, then the total collected is $80.00 on $1,000 in total sales.<\/p>\n

Typically, the difference between tax collected and the tax calculated on total sales is very small due to the fact the 50% of the transactions are rounded up and the other 50% are rounded down. Note that a store can also end up collecting more tax than the calculated tax on total sales.<\/p>\n

Here are two solutions from an accounting and taxing perspective.<\/p>\n

1. If the difference is small, you can pay the difference. So in the case above one would report $1,000 in total sales and pay $82.50.<\/p>\n

2. If the difference is large or one wants to only pay what was collected, then include an explanation and a sales report to the prospective taxing agency that exhibits the taxes that were collected on a per transaction basis.<\/p>\n

Here are several other matters to note:
\n1. The above is more applicable to operations with smaller item sales.<\/p>\n

2. Even if the tax rate is an even number (i.e. 10%), since the item price varies, the same issue will exist. In the above example, 10% of $1,000 and 10% of 1,000 $1 items is the same, however if there were 1,000 items of difference prices, then the collected and calculated would not match either.<\/p>\n

3. If you operating a store that sells items by weight (i.e. deli, frozen yogurt, bakery), then you are more susceptible to variation because a wider range of prices are charge. A taco shop sells tacos for $1 and $2.50, but a frozen yogurt shop can end up selling frozen yogurt at $7.01, $7.02, $7.03, etc.\"One-Stop-Point-of-Sale-Sintel-Systems\"<\/a><\/p>\n

Sintel Systems<\/a>\u00a0is the only direct to end user full-service provider of tailored point of sale systems across retail, restaurant and service industries, including\u00a0frozen yogurt shops<\/a>,\u00a0pizzerias<\/a>,\u00a0sushi restaurants<\/a>,\u00a0caf\u00e9s<\/a>\u00a0and\u00a0retail stores<\/a>.<\/p>\n

As a single source for business solutions, our experienced, knowledgeable team negotiates the complex POS landscape for you to enable you to find the right POS system for your business and budget.\u00a0Hardware<\/a>\u00a0–\u00a0Software<\/a>\u00a0–\u00a0Support<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Desculpe, este conte\u00fado s\u00f3 est\u00e1 dispon\u00edvel em English. Por uma quest\u00e3o de conveni\u00eancia para o utilizador, o conte\u00fado \u00e9 mostrado abaixo no idioma alternativo. Pode clicar na liga\u00e7\u00e3o para alterar o idioma activo. A common confusion for new business owners at sales tax time is not being able to match the sales\/use tax collected versus […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/posts\/2049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/comments?post=2049"}],"version-history":[{"count":1,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/posts\/2049\/revisions"}],"predecessor-version":[{"id":2050,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/posts\/2049\/revisions\/2050"}],"wp:attachment":[{"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/media?parent=2049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/categories?post=2049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sintelsystemspos.com\/pt\/wp-json\/wp\/v2\/tags?post=2049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}