Taxes

Sales Taxes  

Most states require a sales tax to be applied on retail sales (to the end consumer), which may vary depending upon state and local jurisdictions. Since you will be making retail sales and likely collecting tax on a sale, you must obtain a seller's permit and be assigned a tax number. If you are required to collect tax on some items and not others, you will need to create a system of record keeping that accommodates those requirements.  In many areas, you are not required to collect taxes on sales to certain non-profit institutions, such as schools and churches. These institutions should provide you with their tax-exempt number. Consult with your accountant to confirm which items are taxable and which agency you are required to remit sales tax deposits and the frequency of which they must be filed and paid.  

Collecting Sales Tax in SMS  

You must keep your tax system current in SMS. It is your responsibility as a business owner to collect and remit all applicable state, local and district taxes, .ensure the tax information that you provided during your new store setup has been correctly entered into Edible.com for your store and is in compliance with existing law, ensure that tax rates are set properly, and ensure that the appropriate tax rates are applied to all new SKUs in SMS. Ediblewill not recommend or give guidance when it comes to taxes and therefore recommends that you consult with a tax attorney or accountant to ensure that tax rates are set properly for your respective jurisdiction(s).  

It is imperative that you know exactly how to verify or modify your tax rate and how to define which products are and are not taxed. You must modify state and local taxes in the event of change: new rates, changes in taxation of certain items, etc.   

Failure to Pay Federal or State Taxes  

Failure to pay any required federal, state or local taxes is a crime and as such is a violation of your franchise agreement.  

Tax-Exempt Procedures 

At Edible, you may be working with customers that are churches, school systems, and other non-profits, whichmay be eligible for tax-exempt status. If the condition below exists, your customer may be eligible for tax-exempt status:  

• A customer has a tax-exempt certificate. If the sale is to a church, charity, or other non-profit, the customer should have a letter from the organization that states the tax-exempt number. This letter should be obtained from the customer and kept on file. Be sure to check with the tax authority in your area or your accountant to determine if there are any additional requirements you must fulfill for tax exempt status.  

How to Make a Customer Non-Taxable:  

Once a customer’s tax-exempt status is verified, you must mark that customer as non-taxable in SMS. When customers are added to SMS, they are automatically setup as taxable by default. If you want to make a customer non-taxable you must edit that customer’s profile in SMS as shown in the forms section.