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Tax exemption

J Hill Designs

New Member
if they are tax exempt they can

but I only see it when people buy for resale

they can certainly claim it as a business expense on tax forms etc
 

Solventinkjet

DIY Printer Fixing Guide
They certainly can but to protect yourself, require them to provide a copy of their tax exemption certificate. Getting just their tax exempt number will not cut it in an audit. They usually need to see a copy of the actual certificate.
 

Billct2

Active Member
Yes, have them fill out the form for your state and keep a folder of them in case you get audited
 

ddarlak

Go Bills!
it's on you to know your state's tax code and for them to provide the paperwork. If they don't want to pay the tax, make them do the paperwork.
 

player

New Member
When people wanted to do cash no tax deals, I would say sure, but still pay the taxes. Of course I included the taxes in their special tax free cash price.
 

w2csa

New Member
My understanding is if a business is going to resale the lettering then they will charge sales tax thus you would sell to them tax exempt (with the proper paperwork).
Also, if it is a charitable organization they can be tax exempt as well.
I would question if someone had a tax number, wanted to buy tax exempt and was not going to resale , for example apply to their own business vehicle .
 

fresh

New Member
You can be a tax-exempt organization, which means you do not have to pay sales tax on the items you buy. Examples of this are government entities, certain non-profits (some are required to pay), most churches, schools, etc.

Or you can be a reseller. For example, if you are purchasing printed banners from a wholesaler, you do not need to pay sales tax, since you will be collecting sales tax from your client.

In both of these cases, there should be a state tax exempt form that you should require from your customer before offering them goods tax free. If I don't have the paperwork, I ALWAYS include tax, even if I know they are tax-exempt. Seeing it on a bill often gets them to bring me the form. I have a LOT of exempt clients, and I worry about getting audited. This way, I know I won't be screwed in the long run.

Hope this helps.
 

fresh

New Member
I would question if someone had a tax number, wanted to buy tax exempt and was not going to resale , for example apply to their own business vehicle .

I think they would get in trouble. I use my resale cert all the time, I know at Home Depot it says something to the effect that tax is due if I'm not reselling the item. I would assume its more about the purchaser in that case, not the seller.

The few times someone has come in claiming they have a tax id, I let them know its only for resale, and they are not reselling a banner with their name on it, so they must pay the tax due.
 

stonetree

New Member
In NC we charge tax to the tax exempt like anyone else, they file a paper with the state to get it back. I offer the same to those who can't find their tax number or forgot it, bring it in and I will refund it.
 

31legen

New Member
Tax exempt

In another business i operate, I deal with schools and churches quite often. I contacted the state commisioner of revenue here in Virginia to find whether I was to charge sales tax and I was informed that if the certificate does not specifically say what they are exempt from, they are liable to pay the tax as anyone else.
 
I think were talking about two different things.

There is a difference between claiming tax exempt for resale purposes and between organizations that are tax exempt.

A business can't get their trucks lettered and claim tax exempt. They are not reselling, they are using this for themselves. Takes a Resale License

A tax exempt organization like a church or school could though, but it must be stated on their paperwork what they are exempt from. Takes a 501c3 License from IRS
 
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