A short time ago (Nov. 13), we posted an item regarding the payment of sales tax by an exempt entity on the purchases that it transacts (read the post here). Many exempt entities also question whether they must collect sales tax on their own sales, such as a hospital gift shop or cafeteria, a school spirit shop or a seasonal sale of holiday wrapping paper or mulch as fundraising devices. A few school-related entities have blanket exemptions from charging sales tax on their sales. However, most entities do not have to charge sales tax on the first six days of each year that they transact sales. Nevertheless, if they exceed six days in a year, they are required to obtain a vendor’s license, charge and collect sales tax, and file returns and pay the tax collected to the state beginning with the seventh day. If an entity engages in sales on more than six days and fails to register and collect the tax, it may be liable for all the tax that it should have collected, but didn’t. Therefore, it is critical that organizations keep track of fundraisers they sponsor and the number of days they make sales.