Ask the Accountant…
Question: I am charging my customers a credit card fee if they pay by credit card. I am not charging sales tax on that. Should I be?
Answer: The answer is a solid “Probably.” Although it seems to be counter intuitive, most states will require that you charge sales tax for this charge if other items on your invoice are subject to sales tax. Ask your accountant or call your state’s department of revenue. You don’t want to be audited and owe back taxes, interest and penalties, especially since it would be your client paying the sales tax.
Please email accounting questions you would like considered for the column to [email protected] with the subject line of “Ask the Accountant”.
