Discover the Perfect Sales Tax Invoice Format in Excel for Retail Trade

Sales tax invoice format in excel for Retail Trade

welcome to the business math video number 60 hey just another short video here about sales tax now here's a little diagram here logging company in Finland lot make get some logs you know they have skitters and big trucks to get all the logs the plywood manufacturer in Finland gets the logs makes plywood the plywood manufacturer in Finland since the plywood distributor in USA gel boomerangs company I used to run which manufactured boom ranks got the some plywood in the USA gel bearings made the boomerangs they sold them on the kite flight the kite flight finally sells them to the final customer what about sales tax sales tax is only paid by the final customer when it is bought and it is when an item is bought and it's made to his final destination sales tax must be paid so look at this where is the sales tax here right it's all the way at the end so sis tax is paid on the retail price so when the customer buys the boomerang they pay the tax tax is not paid on wholesale price right logs plywood plywood boomerangs boomerang so there's the final customer right so tax is not paid on wholesale so if when kite flight buys the boomerang from jail boomerangs they do not pay sales tax now there is an exception let's look gel borings goes to the paint store and buys paint and paint equipment from the store now usually they have a some paperwork filed with the paint company with all the proper numbers so the paint company knows the gel boomerangs is an official business and they are allowed to buy wholesale so what happens they buy they're going to buy paint and paint equipment we'll get this because the paint has not made it to the final customer meaning the paint will end up on the boomerang no sales tax is paid on that paint but the paint equipment has made it to its final destination so sales tax is paid right so there's an important distinction it's always the final destination now but I used to be in this situation you could do one of two things you either at the moment of paint buying it you pay no tax on the paint and tax on the painting equipment or the more difficult way is on your local tax forms later then you have to fill in and estimate what your tax your sales tax should have been for something you accidentally bought at whole sale now point number two just want to point something out about this and we already saw this the last two videos I want to talk about the flip side of the coin and there's always in accounting and business there's always flip sides to the point one person's costs or expenses another person's price or revenue alright so let's gel boomerang sells one boomerang to kite flight but check this out from jail boomerangs point of view it costs gel boomerang seven dollars to make but they charged kite flight four dollars okay but to gel boomerangs when you sell something that's 14 bucks now let's switch over to the flip side of the coin here's kite flight kite flight sells one boomerang to a customer well guess what well how much did kite fly pay for it fourteen dollars and then the customer paid this so this has nothing to do with sales tax but it has to do with flip sides of the coin right Gel boomerangs is recording revenue of fourteen dollars but on that same transaction kite flight on they're completely different books as recording a cost or expense for fourteen dollars alright so point one about sales tax always the final destination determines the sales tax and point number two sometimes it's helpful to see both sides flip sides of the coin in this particular situation we saw that revenue and cost for two to one person's revenue is another person's cost alright next video we'll see how to create an invoice from scratch alright see you next video