What is the name of your state (only U.S. law)? CALIF
My wife recently took over a new and used consignment shop. Currently we’re still using the previous owners system of when costumers bring in product to trade we issue them a store credit, when a customer uses their credit for a purchase the register is set up so that the totally is zeroed out except the tax and the customer is responsible to pay the tax. Customers are always complaining and we know of no other consignment store that operates this way. They seem to just zero out the entire purchase (tax and all). My question is, what is the correct (legal) way of making this type of transaction.
Thanks
-Justin
My wife recently took over a new and used consignment shop. Currently we’re still using the previous owners system of when costumers bring in product to trade we issue them a store credit, when a customer uses their credit for a purchase the register is set up so that the totally is zeroed out except the tax and the customer is responsible to pay the tax. Customers are always complaining and we know of no other consignment store that operates this way. They seem to just zero out the entire purchase (tax and all). My question is, what is the correct (legal) way of making this type of transaction.
Thanks
-Justin