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Taxes in Virginia

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egoodell

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So I'm starting to get orders for add-ons now. Like I have a cheese plate for $12.
Since my state tax and the retail tax are both 5% do I just add it all together, tax it all and pay it the way I just pay my room tax online?
Thanks Virginia Innkeepers for your help.
Riki
 

Morticia

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Not being an innkeeper from VA, I still think you should separate them out. On our state tax form, we have a line for 'retail,' one for 'food' and a line for 'lodging'. You might have a line for 'food' that would be appropriate.
 

muirford

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I am not in Virginia, but I don't apply our lodging tax of 6% to add-on packages like the cake package. I charge that at the 6% sales tax only.
Jeanne
 

EmptyNest

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When I did my packages, I lumped it all together as one charge. So if the room was $150 and the Package $150, then I added them and then figured the sales tax.
If that was wrong..then I no one ever called it to my attention in 7 years.
I figured my lodging and meal taxes separately each month.
 

Samster

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one....
 

egoodell

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When I did my packages, I lumped it all together as one charge. So if the room was $150 and the Package $150, then I added them and then figured the sales tax.
If that was wrong..then I no one ever called it to my attention in 7 years.
I figured my lodging and meal taxes separately each month..
I figured it could possibly be done that way since the room tax and the retail tax are the same. I'll check with the state online.
Thanks,
Riki
 

muirford

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When I did my packages, I lumped it all together as one charge. So if the room was $150 and the Package $150, then I added them and then figured the sales tax.
If that was wrong..then I no one ever called it to my attention in 7 years.
I figured my lodging and meal taxes separately each month..
I figured it could possibly be done that way since the room tax and the retail tax are the same. I'll check with the state online.
Thanks,
Riki
.
In West Virginia, the room tax is added to the sales tax for lodging, so even though it is the same amount it is in addition. In our case the room taxes go to the municipality while the sales taxes go to the state.
 

Samster

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When I did my packages, I lumped it all together as one charge. So if the room was $150 and the Package $150, then I added them and then figured the sales tax.
If that was wrong..then I no one ever called it to my attention in 7 years.
I figured my lodging and meal taxes separately each month..
I figured it could possibly be done that way since the room tax and the retail tax are the same. I'll check with the state online.
Thanks,
Riki
.
In West Virginia, the room tax is added to the sales tax for lodging, so even though it is the same amount it is in addition. In our case the room taxes go to the municipality while the sales taxes go to the state.
.
Sounds like here. Sales tax license came from the State. I pay the lodging tax under my business license to the City/County government.
 

egoodell

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one.....
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
 

Samster

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one.....
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
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They don't care here. They just want the total gross sales that is subject to the sales tax (so it could include room rental, packages, retail gift shop sales, etc.) Of course, it's a complicated form despite that. haha!
The total is 7% here but there is a breakdown of local taxes that I have to calculate & fill out. Not a biggie, but more steps of course.
 

hawley

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Nebraska has sales tax of 5%, then different cities and counties have different taxes.
Retail in Lincoln is 7.5% (state, city)
Lodging and sales tax (6 total) adds up to 12% for me.
We don't separate breakfast out for food tax.
 

EmptyNest

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one.....
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
.
I don't think they care. They just want their 5% sales tax so why break it out??? Take your total and give them the 5%:)
 

egoodell

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one.....
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
.
I don't think they care. They just want their 5% sales tax so why break it out??? Take your total and give them the 5%:)
.
That I can do and understand, but when I set up my gift shop is more what I am trying to figure out. If on checkout they purchase a cheese and a jelly on the way out, I would be adding it to the bill. I won't have the time to redo their invoice on the computer to add it to the package, I don't think. I could always add it manually since the tax is 5% and easy to figure I guess.
Riki
 

JunieBJones (JBJ)

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Don't apply lodging tax to packages or food. But if you charge for the whole package you might get stiffed on paying meals tax for everything PLUS the sales tax. I am talking about an event and food item.
Meals tax and sales tax on all food. Sales tax on items like roses.
Example: If a picnic lunch (food) with flowers and champagne costs $50 then you have to break it all down for each item for tax purpuses or just charge the guest meals and sales tax and pay it on both. Whatever YOU charge them is what the taxable amount is, not what YOU paid (and already paid tax on!)
Unless you go to Sam's club and bring your state tax cert and get it tax free. THEN you get to fill out more and more lines on the monthly taxes for local and state. It is not worth it (imho) just charge em and pay it with the rest of it. Fortunately SALES TAX in VA is low (where I used to live it was 14%) so 5% plus meals tax is not bad.
 

JunieBJones (JBJ)

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Not in VA either...We have separate taxes here. I only pay the lodging tax to my City Revenue Department. Sales tax goes on the State Form. It is probably different from municipality even within a State? Sales tax is higher different places within our State depending on various special purpose taxes.
Hard to answer this one.....
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
.
egoodell said:
Yes, Albemarle only has us pay a room tax, no meal tax. That is delivered to them with a check. The sales tax I pay online, and I'll look at it this week as it's possible one of the lines on that form is for retail.
I guess I could call them to find out if they want it listed on the two different lines if it's not clear to me when I do taxes next time. They may not care if it's lumped together since it's all the same 5% for me.
Riki
Retail Sales - that is everything. You don't separate it out FOR VA DEPT OF TAXATION. So if your gross room rental income is $500 and your add on packages are $50 then you just report the whole $550.
BUT if you want to get tricky with the taxes and buy food wholesale then you have a bunch of lines to work all that out and cause more stress.

 

egoodell

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Don't apply lodging tax to packages or food. But if you charge for the whole package you might get stiffed on paying meals tax for everything PLUS the sales tax. I am talking about an event and food item.
Meals tax and sales tax on all food. Sales tax on items like roses.
Example: If a picnic lunch (food) with flowers and champagne costs $50 then you have to break it all down for each item for tax purpuses or just charge the guest meals and sales tax and pay it on both. Whatever YOU charge them is what the taxable amount is, not what YOU paid (and already paid tax on!)
Unless you go to Sam's club and bring your state tax cert and get it tax free. THEN you get to fill out more and more lines on the monthly taxes for local and state. It is not worth it (imho) just charge em and pay it with the rest of it. Fortunately SALES TAX in VA is low (where I used to live it was 14%) so 5% plus meals tax is not bad..
So this tells me that when I start a gift shop area, this will be separate from any of the packages with the rooms, and that I will have to fill out a different line on the form to the state that I submit for my room tax stuff. This might not be so bad, since the only stuff that I buy wholesale is the gift shop stuff, and wine.
Riki
 

JunieBJones (JBJ)

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Don't apply lodging tax to packages or food. But if you charge for the whole package you might get stiffed on paying meals tax for everything PLUS the sales tax. I am talking about an event and food item.
Meals tax and sales tax on all food. Sales tax on items like roses.
Example: If a picnic lunch (food) with flowers and champagne costs $50 then you have to break it all down for each item for tax purpuses or just charge the guest meals and sales tax and pay it on both. Whatever YOU charge them is what the taxable amount is, not what YOU paid (and already paid tax on!)
Unless you go to Sam's club and bring your state tax cert and get it tax free. THEN you get to fill out more and more lines on the monthly taxes for local and state. It is not worth it (imho) just charge em and pay it with the rest of it. Fortunately SALES TAX in VA is low (where I used to live it was 14%) so 5% plus meals tax is not bad..
So this tells me that when I start a gift shop area, this will be separate from any of the packages with the rooms, and that I will have to fill out a different line on the form to the state that I submit for my room tax stuff. This might not be so bad, since the only stuff that I buy wholesale is the gift shop stuff, and wine.
Riki
.
egoodell said:
So this tells me that when I start a gift shop area, this will be separate from any of the packages with the rooms, and that I will have to fill out a different line on the form to the state that I submit for my room tax stuff. This might not be so bad, since the only stuff that I buy wholesale is the gift shop stuff, and wine.
Riki
You have to pay tax annually on any gift shop invenntory you have. FYI. Many people don't know this.
 

egoodell

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Don't apply lodging tax to packages or food. But if you charge for the whole package you might get stiffed on paying meals tax for everything PLUS the sales tax. I am talking about an event and food item.
Meals tax and sales tax on all food. Sales tax on items like roses.
Example: If a picnic lunch (food) with flowers and champagne costs $50 then you have to break it all down for each item for tax purpuses or just charge the guest meals and sales tax and pay it on both. Whatever YOU charge them is what the taxable amount is, not what YOU paid (and already paid tax on!)
Unless you go to Sam's club and bring your state tax cert and get it tax free. THEN you get to fill out more and more lines on the monthly taxes for local and state. It is not worth it (imho) just charge em and pay it with the rest of it. Fortunately SALES TAX in VA is low (where I used to live it was 14%) so 5% plus meals tax is not bad..
So this tells me that when I start a gift shop area, this will be separate from any of the packages with the rooms, and that I will have to fill out a different line on the form to the state that I submit for my room tax stuff. This might not be so bad, since the only stuff that I buy wholesale is the gift shop stuff, and wine.
Riki
.
egoodell said:
So this tells me that when I start a gift shop area, this will be separate from any of the packages with the rooms, and that I will have to fill out a different line on the form to the state that I submit for my room tax stuff. This might not be so bad, since the only stuff that I buy wholesale is the gift shop stuff, and wine.
Riki
You have to pay tax annually on any gift shop invenntory you have. FYI. Many people don't know this.
.
I know that so would probably do it quarterly. What I'm trying to figure out is what to charge and when to pay it.
Riki
 

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