CheapVehicleWrap
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your friend
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What should I do (charging tax)
- Thread starter midnightmadman
- Start date
your friend
signage
New Member
Midnightmadman
This is your problem problem....
you let them nickel and dime you. Stop doing this!
you are letting them to refuse to pay tax. You will be the one paying the fines and penalties that will force you out of business, because of above practices!
you let them BS you of promises of HUGE work to come, so they want it cheap now. What you should be telling these people is that if they produce mare work of the same kind you will give a discount on this work at time of order.
I have had many people say they need there truck lettered with many more to follow to never show up! What I do is charge them the same on all work and discount the end job to reflect the discount, this way I do not get stung or BSed!
You my friend are running a business heading to failure if you do not right you practices now! Good Luck
This is your problem problem....
you let them nickel and dime you. Stop doing this!
you are letting them to refuse to pay tax. You will be the one paying the fines and penalties that will force you out of business, because of above practices!
you let them BS you of promises of HUGE work to come, so they want it cheap now. What you should be telling these people is that if they produce mare work of the same kind you will give a discount on this work at time of order.
I have had many people say they need there truck lettered with many more to follow to never show up! What I do is charge them the same on all work and discount the end job to reflect the discount, this way I do not get stung or BSed!
You my friend are running a business heading to failure if you do not right you practices now! Good Luck
CES020
New Member
One thing you might want to consider to make things right from that previous transaction is to go back to it, change your pricing (lowering it) so your price plus tax equals what you charged him. Then, pay the tax from that transaction out of your pocket (your mistake for doing it in the first place). Then YOU are squared away with the state. You made a mistake, you need to make it right. If not, as others have pointed out,you have admitted to bypassing the sales tax.
What's more important is that YOU get right with the state. Worry about the customers part as a separate matter.
Cough up the money for that old transaction and consider it a lesson learned.
Then, you are fine and have nothing to worry about and your words on this post won't be used against you at a later date.
They CAN revoke your ability to do business, so you better take it seriously and make it right.
What's more important is that YOU get right with the state. Worry about the customers part as a separate matter.
Cough up the money for that old transaction and consider it a lesson learned.
Then, you are fine and have nothing to worry about and your words on this post won't be used against you at a later date.
They CAN revoke your ability to do business, so you better take it seriously and make it right.
shakey0818
New Member
I wouldnt accept a check if he dosent wanna pay tax.Make him pay cash.Some of my good customers pay cash.I know ill get bashed for this but thats the fun of saying it.CASH IS KING SCREW UNCLE SAM.
Gino
Premium Subscriber
No, it's not called bashing when you openly admit to doing about the dumbest thing in business and then brag about it.
That kinda advice should be deleted from this thread. Anyone following your advice should know if/when they get caught.... it might've been your fault.
signage
New Member
:iamwithstupidmidnightmadman
New Member
Follow up!
So, they swear that they are selling the signs to vedors with their product... so they told me they will send me forms and just send them to bill please...
I told them I'll send it after I get the info from them and I've been waiting weeks now.
Today they say here you go sorry for the long delay and all they email me is a copy of there retail license! No tax exempt form or anything of the sort.
I replied with a ST-8 tax exempt form attached and told them this is what they need to fill out and send me please! Are they that dumb or are they trying to pull a fast one? Who knows.
So, they swear that they are selling the signs to vedors with their product... so they told me they will send me forms and just send them to bill please...
I told them I'll send it after I get the info from them and I've been waiting weeks now.
Today they say here you go sorry for the long delay and all they email me is a copy of there retail license! No tax exempt form or anything of the sort.
I replied with a ST-8 tax exempt form attached and told them this is what they need to fill out and send me please! Are they that dumb or are they trying to pull a fast one? Who knows.
skyhigh
New Member
Like Fred said.
I just spoke with the PA dept of revenue Monday of this week, with the same issue.
First thing..... non taxable sales are not all "FOR RESALE". There are a number of reasons a sale can be tax exempt, from a "Non-Profit" organization, to some facets of the transportation field, to gas exploration businesses...YMCA's....Schools...Municipalities ect....
The reason for my call to the DOR, was for signs going to a gas exploration company. The DOR said they were indeed exempt, and to get a Tax Exempt form from them. I further explained to this DOR rep. that on occasion I will get companies that claim to be exempt (against what I believe to be the case), and what was my role in collecting/arguing with them over the tax? The rep told me all I had to do is collect their exempt form.....period. She went on to say, I was not responsible to verify their tax exempt status.....just GET THE FORM SIGNED & to keep it n file for 4 years with my taxes.
midnightmadman
New Member
Makes sense, so once they fill out that form and sign it... its their problem if they are lying.
skyhigh
New Member
Another issue concerning sales tax (in Pennsylvania anyways) that most sign companies are not aware of.
For all business's that are not tax exempt
I charge a 6% sales tax on top of my cost. SHOULD THE SIGN BE INSTALLED IN CONCRETE, then I am responsible to pay the taxes. I am not permitted to charge the customer tax on their invoice. This falls under what the PA DOR calls a "Building Contract".
Example....
If I install channel letters on a McD's building, I would charge them sales tax on top of my charges.
If I install a pylon sign in concrete, then their bill (by law) cannot include sales tax. I cannot charge tax for any materials or labor on their invoice. Any materials, which we would normally get from our suppliers (not taxed), must be listed on our MONTHLY "sales & use" tax form. (You guessed it, under "USE" tax). Now that being said, we are only responsible to pay the "USE" tax on the raw materials we purchased, NOT the tax on the finished product. The state is actually losing taxable money, as they only collect on these materials.
ie....I have $200 in materials & charge $800 for the sign. The state only gets the tax on the $200 ($12 paid on my "use" tax), not the tax on all $800.00 ($48 paid by the customer).
Crazy I know.....and before you argue with me, I will be glad to send you a copy of my letter from PA DOR's Chief Council. :ROFLMAO:
For all business's that are not tax exempt
I charge a 6% sales tax on top of my cost. SHOULD THE SIGN BE INSTALLED IN CONCRETE, then I am responsible to pay the taxes. I am not permitted to charge the customer tax on their invoice. This falls under what the PA DOR calls a "Building Contract".
Example....
If I install channel letters on a McD's building, I would charge them sales tax on top of my charges.
If I install a pylon sign in concrete, then their bill (by law) cannot include sales tax. I cannot charge tax for any materials or labor on their invoice. Any materials, which we would normally get from our suppliers (not taxed), must be listed on our MONTHLY "sales & use" tax form. (You guessed it, under "USE" tax). Now that being said, we are only responsible to pay the "USE" tax on the raw materials we purchased, NOT the tax on the finished product. The state is actually losing taxable money, as they only collect on these materials.
ie....I have $200 in materials & charge $800 for the sign. The state only gets the tax on the $200 ($12 paid on my "use" tax), not the tax on all $800.00 ($48 paid by the customer).
Crazy I know.....and before you argue with me, I will be glad to send you a copy of my letter from PA DOR's Chief Council. :ROFLMAO:
Last edited:
skyhigh
New Member
YEP....unless this DOR representative didn't know what she was talking about. And we all know that surely couldn't be the case.
J Hill Designs
New Member
or itemize it as "refurbish existing sign" - all labor, no tax 
Mike Paul
Super Active Member
heyskull
New Member
We get these clients in all the time.
Even though they charge Tax themselves they don't want to pay it when they buy something.
Show them the door... You really don't need custom like this.
We have just had a tax rise of 2.5% in the UK putting tax up to an all time high of 20%.
Since coming back after the Christmas / New Year break the only jobs we are doing are signage to advertise the client isn't charging VAT or has reduced it!!!!!
I most certainly will not be doing like wise....LOL
SC
Even though they charge Tax themselves they don't want to pay it when they buy something.
Show them the door... You really don't need custom like this.
We have just had a tax rise of 2.5% in the UK putting tax up to an all time high of 20%.
Since coming back after the Christmas / New Year break the only jobs we are doing are signage to advertise the client isn't charging VAT or has reduced it!!!!!
I most certainly will not be doing like wise....LOL
SC
signage
New Member
Do not do this! If you get caught it will cost you big time. I hope you are not serious about doing this!