General Discussion

90% of my sales were on the internet and to customers out of my state or out of the USA. I only had to pay sales tax on sales made in California. My answer was not to charge anyone sales tax. At the end of the year, I calculated how much sales tax I owed to the State of California and sent it in. It didn't amount to a hill of beans to my profits, really, and it was easier than dealing with charging my customers. I just took the total California sales and multiplied it by the current sales tax rate. So, I overpaid some. I got audited one year. The nice man showed up at my place of business, and I showed him how it calculated the tax I owed and that was how much I paid. He said, "You overpaid. I can issue you a refund." I said not to bother. It wasn't enough money to worry about. I never heard from the sales tax people again.