Banner Wholesalers

[Scotchbrite]

this is interesting, i would have thought there's sales tax on any goods and service that's sold.

If im suppling a product to another company to resell, i still need to charge GST (Goods and services tax) and then the reseller needs to add tax (gst) on top of that.

Sales tax is only charged to the end user in the U.S. and sales tax is dependent on the individual states. A lot of businesses were avoiding it because their facility was located in a different state than the end user they were shipping to. That end user was supposed to declare the purchase on their individual tax returns, but most people didn't.

The businesses weren't required to collect sales tax if they were shipping to an end user in another state. In the past few years, states have started passing legislation that requires companies to collect and submit sales tax if they ship products into their state regardless of where the originating business is located.

 

[Pauly]

Sales tax is only charged to the end user in the U.S. and sales tax is dependent on the individual states. A lot of businesses were avoiding it because their facility was located in a different state than the end user they were shipping to. That end user was supposed to declare the purchase on their individual tax returns, but most people didn't.

The businesses weren't required to collect sales tax if they were shipping to an end user in another state. In the past few years, states have started passing legislation that requires companies to collect and submit sales tax if they ship products into their state regardless of where the originating business is located.

That's very interesting!
The only person the sales tax should affect is the end user as they're paying for it. as it's usually a markup on the final price?

 

[bcxprint420]

this is interesting, i would have thought there's sales tax on any goods and service that's sold.

If im suppling a product to another company to resell, i still need to charge GST (Goods and services tax) and then the reseller needs to add tax (gst) on top of that.

The way the tax law works in the United Sfates is there is only supposed to be one tax in each direction. So as the product goes from manufacturer to retail business selling to the end user there is only one time tax can be collected which is from the end user to the retail shop. The retail shop remits the tax. So if a compoany claims to only be a trade only shop meaning they only sell to resellerz then they will not have sales tax charged ever. This is the distinction that i was making from the start of this thread. Signs 365 should not be selling to an end user at all if they are a trade only shop. And dude buying his banners to use himself the end user and he is bitching about the wholesale cost going up he needs to pull his head out and thank the lucky stars he is even buying those banners from them at all much less buying them cheaper then the wholesaler is charging him.

 

[Scotchbrite]

The only other thing that gets tricky is "use tax". Lots of businesses get it wrong, sometimes on purpose, sometimes not. Anything a business purchases that will be used by the business, they should pay sales tax on it. For example, any PPE we purchase for the sign shop should have sales tax applied. That can be done either by the company we purchase them from or we have to file it with our sales tax returns. I do our sales tax remittances and I'm lazy, so we make the business we buy that stuff from collect the sales tax. Saves me the extra work of figuring up the use tax along with the regular retail sales tax.

 

[GCIcincinnati]

who can I help

 

[10sacer]

Just got a marketing email from WS Display offering this

 

[gnubler]

In 2016, i filled out the paperwork for signs365 and was initially rejected
They did a google street view and did not see a sign saying we were a sign company (we actually had not
Yet put up a sign)
It seemed like an odd sticking point at the time, but it proves they were screening out end users

Something similar happened to me when I signed up. They tried to verify my authenticity by checking for a website or social media pages, I had none at the time. I think I ended up sending them my reseller license.