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General Tanning Industry Discussions Tanning Salon Owners and Professionals in The Tanning Industry Discuss a wide Variety of Topics. |
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01-21-2014, 10:58 AM | #1 (permalink) |
Join Date: Dec 1 2013
Posts: 35
Rep Power: 0 | Another Tan Tax Question When you sell EFT packages, do you charge the tan tax monthly? For instance, a customer signs up for a 39.95 a month package, do tell them they will be charged 39.95 plus 3.95 (43.90). Or do you just charge them 39.95 and pay the 10% out of that? Thanks! |
01-21-2014, 11:04 AM | #3 (permalink) |
Join Date: Dec 1 2013
Posts: 35
Rep Power: 0 | Re: Another Tan Tax Question One more question, do you tell the cutomers up front that the 39.95 is going to be 43.90? And how would you handle a situation where a previous owner did not add the 10% but you wanted to start? Thank you! |
01-21-2014, 11:27 AM | #4 (permalink) |
Join Date: Aug 21 2007 Location: San Jose, CA
Posts: 155
Rep Power: 17 | Re: Another Tan Tax Question My opinion is that the client has made an agreement for a set price and the business should honor that. I understand they made the agreement with the previous owner, but they won't see it that way. They are grandfathered in unless they cancel. In order for you to do this properly, you would have to cancel their membership and then start over with the new price. You can either 1) leave the grandfathered accounts alone and make all new EFTs proper, or 2) cancel grandfathered memberships and start anew. If you decide 2), what I would do is give some lead time, say 2 months, and I would say "as the new owner, I've discovered that the previous owner mishandled their accounts, and I need to fix their error by charging tax properly. This means we will need to redo your account with new paperwork and the price of your membership will go up by a few dollars to pay for tax." It's a bumpy ride to get it right. |
01-21-2014, 12:37 PM | #5 (permalink) |
Join Date: Feb 10 2005
Posts: 8,304
Rep Power: 35 | Re: Another Tan Tax Question I would leave the verbage out about the previous owners. I agree with the rest though. I would say in order to keep up with current IRS regulations we need to update all of our accounts.
__________________ "under exposure to UV rays is as dangerous as overexposure....this is D life" eileen |
01-21-2014, 06:12 PM | #7 (permalink) |
Join Date: Nov 13 2006 Location: Washington State
Posts: 172
Rep Power: 18 | Re: Another Tan Tax Question Our EFT forms state the price of the package and have: plus all applicable state and federal taxes. Our state likes to change tax rates pretty frequently and so it was easier to do it that way for us. We always tell our clients that taxes will apply to their package pricing. Occassionally we have those that don't want to pay it, but we explain that it is state and federal taxes and I have no option as a business owner but to collect it. That usually is good for them. |
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