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Direct Sales

Forum|Forum|3 years ago
April 1, 2023
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I am in Direct Sales. When a customer orders on my website, do I record that payment as monies received, or do I just report the commission when I receive it?

Not A Product Question

Best answer by AliciaP1

You need to report the amount of income you receive on your tax returns. If the customer pays you and then you pay another company for a product, you need to report the income from the customer and your expense of the purchase. If the customer uses your website to pay the company for the product directly and then the company pays you a commission based on that sale, your income is the commission and is reportable when you receive it.

AliciaP1Answer

You need to report the amount of income you receive on your tax returns. If the customer pays you and then you pay another company for a product, you need to report the income from the customer and your expense of the purchase. If the customer uses your website to pay the company for the product directly and then the company pays you a commission based on that sale, your income is the commission and is reportable when you receive it.

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