Sales tax question

[unclebun]

Sales and Use tax go hand in hand. He provides you a resale license, you pass off the burden of collecting the sales tax to the buyer, end of story. If he uses his resale license to avoid paying the sales tax, but opts to use the product, then the buyer is responsible to pay the sales tax in the form of a use tax. If the guy says he's going to use the graphics to help sell the trailer, are you still going to charge him sales tax?

Yes, I would charge sales tax if he's using the graphics to sell the trailer. He's still the end user.

Is every sign maker so dense? There should be no question or argument about this.

Try not withholding tax on your employees some day and telling the IRS that it's the employee's responsibility to pay it voluntarily.

 

[bannertime]

It's very simple.

1. Are they a non-profit with state issued sales tax exemption?
2. Are they registered in your state as a reseller of the product you are selling them?
3. Are they reselling the product you are selling them?
4. Are they Direct Pay exempt?
5. Have they given you the paperwork?

 

[Greg Kelm]

Yes, I would charge sales tax if he's using the graphics to sell the trailer. He's still the end user.

Is every sign maker so dense? There should be no question or argument about this.

Try not withholding tax on your employees some day and telling the IRS that it's the employee's responsibility to pay it voluntarily.

Dick move, didn't know we were throwing personal jabs. Just providing my professional opinion in this scenario.

 

[Gino]

Dick move, didn't know we were throwing personal jabs. Just providing my professional opinion in this scenario.

Hahahahahaaaa...... you're new here. This place thrives on jabs and then some. It gets down right mean......... sometimes. Don't fret it.

 

[Greg Kelm]

Hahahahahaaaa...... you're new here. This place thrives on jabs and then some. It gets down right mean......... sometimes. Don't fret it.

Yeah, I'm a long time lurker, but finally created an account to chime in here and there. I have thick skin and won't be losing any sleep over it haha.

 

[unclebun]

Dick move, didn't know we were throwing personal jabs. Just providing my professional opinion in this scenario.

That was not a personal jab to you; just that it is amazing to me how many people are on this thread advocating that the OP should break the law.

 

[WildWestDesigns]

Sales and Use tax go hand in hand. He provides you a resale license, you pass off the burden of collecting the sales tax to the buyer, end of story.

It is up to the seller to make sure that the sale qualifies for tax exempt.

That is clearly stated on the revenue site in the OP's jurisdiction if nothing else.

The purchaser is providing a filled out legal document that is true, but you as the seller are also stating that the exemption is on the up and up. You are essentially vetting it and there are certain things (depending on the jurisdiction) that you have to have as far as documenting everything in case there is an audit over it and within a certain time frame.

 

[Johnny Best]

Did anyone mention that to tell the doctor to pay you cash if he does not want to pay the sales tax.
I would rather have a problem with the IRS than with state sales tax people.

 

[rydods]

Yes, I would charge sales tax if he's using the graphics to sell the trailer. He's still the end user.

Is every sign maker so dense? There should be no question or argument about this.

Try not withholding tax on your employees some day and telling the IRS that it's the employee's responsibility to pay it voluntarily.

My previous employer stopped withholding my taxes and I was stuck paying them. So apparently, it's still the employees responsibility to at least make sure your employer is withholding it. He also stopped paying for the printing equipment that an employee and I co-signed on and we had to pay that back but I knew that was my responsibility if he failed to make payments. My taxes ended up MY problem.

 

[unclebun]

My previous employer stopped withholding my taxes and I was stuck paying them. So apparently, it's still the employees responsibility to at least make sure your employer is withholding it. He also stopped paying for the printing equipment that an employee and I co-signed on and we had to pay that back but I knew that was my responsibility if he failed to make payments. My taxes ended up MY problem.

New laws prohibit doing what your employer did, which was pay you as contract labor.

 

[rydods]

Did anyone mention that to tell the doctor to pay you cash if he does not want to pay the sales tax.
I would rather have a problem with the IRS than with state sales tax people.

That's actually a great point and something I was going to ask if this tax issue is really that big of an issue. My accountant gave me a sales tax exempt form for him to fill out. If he fills it out, I'll send him the invoice excluding the tax. At that point, I don't really see it being my responsibility.
I do a lot of work for hospitals and non-profit organizations but this rarely comes up for regular day to day businesses.

 

[rydods]

New laws prohibit doing what your employer did, which was pay you as contract labor.

Good to know. Back then, my lawyer said there really wasn't much he could do. He said it was more of a d*#ck move on his part.

 

[shoresigns]

The physician either doesn't understand how sales tax and resale exemptions work, or they're trying to pull a fast one on you. Resale exemptions are for things that are being resold to a business's clients, so that only the "end user" pays sales tax. Physicians can probably claim resale exemptions on disposables like bandages or whatever, if they're billing a client for them.

Perhaps they're conflating sales tax and income tax? The trailer wrap is a business expenses that can probably be "written off", so that the physician can claim an income tax refund at the end of the fiscal year.

 

[CanuckSigns]

Man sales tax down south sounds like a massive headache! We have HST here, it is added to pretty much everything except essentials (bread, milk, fruits etc) and everyone pays it, if you are a business reselling the product you claim the amount you paid against the amount you owe and either pay the difference or get a credit, super simple and I don't need to know my clients intentions with the products.

 

[Solventinkjet]

I see a lot of comments here saying if you simply get a sales tax license from the customer, you don't have to worry about it and just not charge tax on everything. We found out the hard way that that's not true. If your customer gets audited and they find that they didn't get charged tax on certain things that they should have, they will come after you and audit you to find out how many other people you didn't charge tax on and here in Colorado the quadruple the amount owed. We found out that even if the person has a sales tax license, we still had to charge tax on printer parts as they do not end up in resold product. They put the responsibility on us, not the sales tax license holder.

 

[John Miller]

In CT a person must resell the materials he does not pay tax on, then when he resells the item, HE charges tax, that's how the state gets their money. Don't let him get away with no tax. In CT the state will make you pay, it's your problem getting reimbursed by the loser who's trying to save the tax.
I had a guy try to pull that with me., when I told him the tax exempt # was only for things he sells, he said "well maybe I'll sell my business someday"

 

[victor bogdanov]

F u c k taxes and bully government that has everyone scared in this thread

 

[Texas_Signmaker]

F u c k taxes and bully government that has everyone scared in this thread

I'd like to see you say that to the State of Texas

 

[victor bogdanov]

I'd like to see you say that to the State of Texas

maybe if I wasn't using my real name on the forum I'd go into details

 

[victor bogdanov]

I was just daydreaming of all businesses stopping sales tax collection, if everyone doesn't collect and stops assisting the theft then things would get interesting, or any other taxes for that matter. but that's just daydreaming