Sales Tax

Sales tax is charged on all items that are not intended for resale. In order to not pay sales tax on items we are going to resell, we must give the seller our California Resale Certificate.

We pay sales tax every Quarter to the State Board of equalization. We must pay sales tax for all of our expendables that were paid to us, as well as for Use Tax. That could be on items purchased on the web from another state, or items that we did not pay sales tax on, but ended up not selling to a consumer and just used ourselves.

Resale Certificate

We have a resale certificate available with our resellers permit number in our google drive.

Resale Certificate

This allows us to avoid paying sales tax on items we are going to resell. This saves us ~9.25% on our purchases of expendables and other items for resale, but the vendor must have this form on file in order to not charge sales tax to us.

Usage

• Download the form
• Fill out the Vendor
• Make sure Description of Property to be used for resale is accurate
• Email PDF to Vendor

How to Pay

Go to the California Department of Tax and Fee Administration website. Use LastPass credentials to log in.

• Under Accounts, Select Sales and Use Tax for Bolt Lighting Rental

• Under the "I Want To" column, select Manage Payments and Returns

• Select the date that says "File Return" on the left.

First Page

• Enter Total Sales

Get Total Income from the quarterly profit and loss statement in QuickBooks. Click the Reports tab on the left side, select the Custom Reports tab, and select Last Quarter Profit and Loss.

Take Total Income and subtract Equipment Sales and Discounts Given enter that in Total Sales. If the category is not present, that means the total from it is zero. It can be disregarded.

• Enter Sales of Fixtures and Equipment

You can get this from the 1204 Equipment Sales line in the Profit and Loss Report you've run.

• Enter Items Subject to Use Tax

Go to the Use Tax App and enter the dates for the period to find the amount to enter.

Second Page

• Skip the section for Fairground Sales

Third Page

• Enter Sales to other Retailers

This is Milk Crate Dividers to retailers. Go to Custom Reports > Bolt Film Solutions.

• Fill in Nontaxable Labor

This is 1212 COVID Fee Income from the Profit and Loss report, Along with Deliveries as well. If either of these are zero they will not show up in the profit and loss and can be disregarded.

• Fill in Sales for Interstate Commerce

The only ones we will have are for Bolt Film Solutions. Go into the Bolt Film Solutions Backend. Selling > Orders. In the top right click Download CSV. Uncheck Cancelled Orders, and then select Specific Date Range for Order Date. Set it to the same dates as the quickbooks report. Look for all orders that shipped out of California.

• Under Other Non-Taxable Sales, select Tax Paid Rentals in the Other Non-Taxable Sales Column.

Add Together Camera Rental Income and Rental Income from the Profit and Loss Statement from Quickbooks

• Make another deduction category called other titled "Reimbursement-Expenses"

Total up all the Income accounts for mileage, fuel, tolls, and Loss/Damage from the Profit and Loss report and enter it here.

Fourth Page

• Did you make any transactions subject to only the state rate of 7.25% (not subject to district tax)?

Select No

• District Tax Allocation

Allocate all taxes to Alameda county.

Fifth Page

• Look at the Total Tax Due. If it's above $500, contact Ryan for Approval.

Sixth Page

• Once you have completed filing our sales tax, pay the amount due.

Use the TAX ACCOUNT on file to pay.

• Under Payment Details, Select Return Payment for Payment Type

Confirming Sales Tax

Fill in your information. Use the business phone as your phone number.

• select return payment

Now you'll need to save this in our google drive and post it to slack.

• Press View Printable Summary (PDF)
• Save Page as PDF
• Save it in our Google Drive Financials > Government Filings > Sales Tax Google Drive Link

Each year should have a different folder.

• Rename the file with the period you filed sales tax for
• Send the final google drive file in the #General slack channel

How to Setup Vendor as Reseller

We need a process on how to do this, where do we keep their resale certificate, how do we make sure we don't charge them sales tax?