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Old 09-22-2010, 08:58 AM
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terrapro terrapro is offline
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Join Date: Sep 2006
Location: mid-mich
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Originally Posted by MarcSmith View Post
so if I pay 10bucks for a plant with a 6% sales tax. I pay the retail cost plus tax. 10.60 I then charge my client $10.60. no markup no fees. they are the end user. the retail sales tax has been paid...

but in a nutshell, it would be hard to prove that you did not mark up the materials cost. but again if you have the client buy there material and pay the sales tax on it. they are the end user... they have paid the tax, you are just installing what they bought...

the problem with doing it this way is that you lose the retail markup, which will add significantly to the profit on any job...
Yep, if you don't mark it up and you paid sales tax when you purchased the materials then you don't need to collect again because it has already been paid. In your accounting just call it material reimbursment or something along those lines.
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