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La Joya ISD Internal Audit Sales Tax Reporting
Rene Flores – Internal Auditor Elias Garcia – Assistant Internal Auditor Gracie Muniz – Secretary March 22, 2013
Sales tax on taxable transactions must be collected, reported and remitted each month (including summer months and months with zero taxable sales) to the Internal Audit Department using the Sales Tax Summary Report The Internal Audit Department will compile and forward the information to the Accounting Department The sales tax collected will be forwarded to the State Comptroller’s Office Sales Tax Reporting
Two one-day tax-free sales per calendar year Campus-wide Fundraisers Clubs: bona-fide chapters Recognized by school Elected officers Hold meetings Conducts business Tax-free sales
One way to qualify as a one-day tax-free sale would be to deliver the sellable items on a single day Pre-paid orders and/or collections could be taken over an extended period before delivery EXAMPLE: YEARBOOK SALES Qualifying for tax-free day
Acting as an agent or sales representative Candy sales Candles Book-fairs Non-qualifying fundraisers
Food and beverage sales are exempt from collecting sales tax Concession stand sales are also exempt Food and Beverage Sales
Sales tax must be collected when selling materials printed with the school logo (Unless sold during one-day tax-free sales) T-shirts with school name or logos Other school items (pencils, etc.) EXAMPLE: SCHOOL STORE ITEMS Printed Materials
Sales tax must be collected when selling uniforms to students (Unless sold during one-day tax-free sales) EXAMPLE: DRILL TEAM UNIFORMS EXAMPLE: CHEERLEADING UNIFORMS (GLOVES, SHOES, ETC.) Uniforms
Filed monthly Step 1: Determine if a sale is completed A “sale” is the transfer of title or possession of tangible items When campuses purchase inventory/merchandise for re-sale, they are considered the reseller Step 2: Determine if a sale is taxable Sales Tax Reports
Added to selling price: If the selling price is $1.00, the school would collect $1.09 for each item sold. (roundedat 8.25% tax rate) Included in selling price: If the total sales include tax, you must back out the amount of the sales tax. Divide the total revenue collected by 1.0825. EXAMPLE: $100.00 revenue collected divided by 1.0825 = $92.38 (rounded). $92.38 is the amount that is reported as taxable sales. (at 8.25% tax rate) Calculating Sales Tax
Sales Tax Report Completed by Club or Group Sponsor Enter club/organization and reporting month Enter total sales Enter non-taxable Enter one-day tax-free sales Form will calculate: Net taxable sales Total taxes Sales Tax Forms
Sales Tax Summary Completed by Bookkeeper Enter Club or Group List Enter total sales Enter non-taxable Enter one-day tax-free sales Form will calculate: Net taxable sales Total taxes Sales Tax Forms
After a check is completed to pay the sales tax collected: Enter the check on the CAF system Each club/organization that submitted sales tax will have their portion deducted on the check screen for the corresponding month Entering Sales Tax