Tuesday, July 24, 2018

How to find your sales tax rate, and how to calculate sales tax for your orders.

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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