How to find your sales tax rate, and how to calculate
sales tax for your orders.
As an Avon Representative, you are required to collect
sales tax on all of your customer orders. To accomplish this, you need to know
what your
local sales tax is. An online resource for locating your local
sales tax is
https://www.avalara.com/taxrates/en/calculator.html
This website is constantly updated with any applicable changes as they come
about (sales tax can periodically change, usually going up).
On the website, enter in the zip code in the search box,
and click ‘Determine Rates’. The result will show the percentage you need for
your calculations.
In this example, the sales tax rate for zip code 89110 is
8.25%.
Now that you know your local sales tax rate, you can
calculate the sales tax for your orders.
Get the subtotal of all the products your customer
ordered:
Item # Description Quantity Cost
048-546 Little
Black Dress Eau de Parfum
1 $25.00
463-393 Dramatic Firming Cream 1 $8.50
The subtotal for this order is $33.50.
Add in the $.75 order processing fee = $34.25
This is your new subtotal.
Now calculate the tax using the new subtotal, and the tax
rate you looked up in the first step.
Convert the percentage into a whole number, by dividing the number by 100. 8.25 / 100 = 0.0825
Next, multiply your total by the sales tax number. $34.25 X 0.0825 = $2.83.
This is your sales tax amount.
Finally, add your new subtotal and sales tax amount
together: $34.25 + $2.83 = $37.08 - This is your customer’s grand total.
Collect this amount.
Not so bad, right? I know getting the hang of sales tax
can be daunting, but hopefully these steps will help you get comfortable with
the process. Before you know it, you won’t need this tutorial at all!
Chris Arnold
Avon Independent Sales Leader
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