A computer sales invoice is a document given to consumer and business customers listing the computer(s) or accessories that were sold, the unit cost and quantities of each, taxes, and any applicable discounts or offers. The invoice can be issued as a receipt for documentation purposes or as a demand for immediate or future payment.
Table of Contents
- How to Calculate Sales Tax
- Computer Salesperson Salary & Hourly Pay (/hr)
Charging clients the correct sales tax, whether the transaction is online or in-person, is essential. To find the correct sales tax to charge a customer, follow the steps below, sourced from TaxJar.com. (Note: Check that the items that are being sold are indeed taxable—items that are sold B2B (Business to Business) are typically not taxed).
Determine if there is a sales tax “nexus” in the state in which that products are being sold. A nexus can exist if there is a physical location in the state, employees, affiliates, inventory, or, in certain circumstances, if there is an exceptional amount of annual sales (either the number of transactions or total dollar amount) in the state. If the seller determines there is no nexus in the state, a sales tax does not need to be applied to the invoice. If the seller does determine that a nexus exists with one (1) or more states in which they are shipping to, they need to determine if the state has an origin or destination-based sales tax. For a full list of origin and non-origin based states, check out the TaxJar page here.
A sales tax permit is required in every state where the company will be collecting sales tax. For a comprehensive list of each state’s application process and guidelines, check out the TaxJar’s state-by-state tax guide.
To add on the required sales tax to purchased items, find the state’s local tax rate. Tax Foundation has created an updated list of all fifty states’ tax rates, which can be used to identify the correct tax to charge. As stated in Step 1, the required tax will reflect that of either the current state or the destination state, depending on if the computer company is in an origin-tax state or not. Upon determining the tax rate, multiply all applicable items by the rate and add the sum of the values to the total invoice amount.