Gino
Premium Subscriber
Now that doesn't make sense. Other than I think Alaska, Delaware, Montana, New Hampshire and Oregon, where there is no sales tax..... tax must be collected on almost every kind of sale except for food sold in grocery stores, prescription medications and some clothing.
If you are paying sales tax and then charging your customer sales tax, then you are double taxing people and that's illegal.
If you aren't charging tax and don't have a tax exemption form signed and dated by your customer, that is also illegal.
Someone MUST be collecting the tax and only once per item at all times
So it you are supplying a product to someone that gives you an exemption form, then they must collect the tax. If they don't prove they have a current one and sign one of yours, then you must charge them tax, no matter how red in the face they get.
See, there are a great number of companies out there, that apply for the exemption. but it must be re-newed each and every year. If someone doesn't re-new and just tells you, you are in violation for not doing your job of collecting taxes for your state. By having a certificate yourself, you are telling your state you will collect where necessary. It's tough, but can be done by just updating your books once a year with all of your customers.
Never heard of a $250 minimum, but it could happen I guess.
If you are paying sales tax and then charging your customer sales tax, then you are double taxing people and that's illegal.
If you aren't charging tax and don't have a tax exemption form signed and dated by your customer, that is also illegal.
Someone MUST be collecting the tax and only once per item at all times
So it you are supplying a product to someone that gives you an exemption form, then they must collect the tax. If they don't prove they have a current one and sign one of yours, then you must charge them tax, no matter how red in the face they get.
See, there are a great number of companies out there, that apply for the exemption. but it must be re-newed each and every year. If someone doesn't re-new and just tells you, you are in violation for not doing your job of collecting taxes for your state. By having a certificate yourself, you are telling your state you will collect where necessary. It's tough, but can be done by just updating your books once a year with all of your customers.
Never heard of a $250 minimum, but it could happen I guess.