Should I Charge Sales Tax?
The simple answer is YES!
As a consultant, when you place an order with Paparazzi, you are charged the $2.75, plus sales tax if you reside in an area that has sales tax. One of the things I found most confusing at first was that Paparazzi charges you the sales tax on the $5 retail price, not the $2.75 wholesale cost.
The cool thing about Paparazzi is that you don't have to keep track of your sales tax or submit quarterly payments. Paparazzi does all that for you! I never have to worry about paying sales tax to the state of Ohio.
If you don't charge sales tax, you are losing out on a boatload of $$$$$!
Where I live, we have a 7.25% sales tax rate. That means for each $5 piece I sell, I have $0.36 in sales tax. If I sell 100 pieces, I've lost out on $36 in recouped tax money. If I sell 500 pieces, that amount grows to $180 lost. If I make Life of the Party with Silver Access, I would've lost out on $1800 in a year!
It cuts into your 45% commission if you don't recoup the sales tax. It costs me $3.11 to purchase a piece from Paparazzi and I sell it for $5.36 with tax.