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  #1  
Old 08-11-2011, 06:23 PM
swbluto swbluto is offline
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Join Date: May 2011
Location: Too far north and not hot enough, Spokane, WA
Posts: 96
Someone didn't pay their sales tax

So, I sent an invoice to a "rental customer" and they paid for it by check, but didn't pay for the sales tax that was due. The services were 50 dollars, the tax was 4.35, and they sent 50.

What would you do if someone did this? I'm pretty sure I'm going to have to eat this sales tax when taxes are due and I'm not entirely sure if that's something I want to do, but yet I don't want to scare off the customer with a demanding "Pay your taxes or we'll stop servicing your lawn!" message. Truth be told, I'd be willing to eat the taxes on her lawn since it's an easy lawn, but what *should* I do?
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  #2  
Old 08-11-2011, 06:50 PM
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Patriot Services Patriot Services is online now
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Join Date: Jul 2006
Location: Tampa FL
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Next invoice add it as a past due amount with a nice note. Otherwise just eat the 4.35.
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  #3  
Old 08-11-2011, 11:42 PM
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Wiedmann Wiedmann is offline
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Join Date: Apr 2011
Location: Prole, IA
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happen to me recently with a realtor/ homebuilder. He made the checks out to me on the spot after he had forgotten to pay. I decided since I hope to build a good relationship with him that I would "eat" the sales tax this one time. Does make me somewhat upset that I have to pay it but thats just part of doing business I suppose. I love it when I give a new customer a bid and they argue with me about them not having to pay the sales tax... like that i should just cover it.. yah, ill cover it with a higher price to do your yard..
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  #4  
Old 08-12-2011, 01:49 AM
Darryl G Darryl G is offline
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Happens to me on occasion, in fact just this month. If it's a regular customer and I figure they just looked at the wrong line on the invoice, I'll usually just edit the invoice so that with tax it comes out to what they paid, assuming the invoice isn't more than a couple hundred bucks. If it's a new customer or a significant amount I send a statement with the amount due. I get customers telling me all the time that they don't understand why I'm charging them sales tax because their other guy never did. I tell them that I don't charge sales tax, I just collect it for the state. In my state they come down on you really hard for failure to collect/pay sales tax....really hard!!
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  #5  
Old 08-12-2011, 08:26 AM
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DIXIECONTRACTING DIXIECONTRACTING is offline
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Location: NY
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I would call them and say by law I have to charge you tax.
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  #6  
Old 08-12-2011, 10:53 PM
MowHouston MowHouston is offline
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Join Date: Sep 2007
Location: Houston, Tx
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Itemize your invoices to show the subtotal, tax, then total?
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  #7  
Old 08-14-2011, 11:15 PM
lukemelo216 lukemelo216 is offline
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Join Date: Oct 2008
Location: South East WI
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yeah just tell them that by law you are required to collect sales tax from every customer. And leave them a note stating that if they are exempt from paying sales tax that you will need documentation on file. Simple as that
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  #8  
Old 08-15-2011, 02:07 AM
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bohiaa bohiaa is offline
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Location: Bellville Texas, near Houston
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Yes You have to REINVOICE them again.... IT's A PITA but it happened to me several tiems
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  #9  
Old 08-17-2011, 10:31 PM
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justanotherlawnguy justanotherlawnguy is offline
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Location: tampa, fl
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Sales tax on lawn service? What a major pita
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  #10  
Old 08-18-2011, 05:55 AM
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A Leaf Above A Leaf Above is offline
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Location: South Florida
Posts: 222
Just tell them you wont add sales tax to their invoice next time BUT they have to pay you cash instead of check ....
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