Originally Posted by zachj265
I've searched the dept of revenue and read multiple documents as to the correct way of dealing with sales tax. Last year I paid sales tax when I purchased pesticides etc from suppliers and factored the price into what I charge my customers as a flat rate. From what I've read it appears I should be purchasing pesticides tax exempt from suppliers and then charge customers sales tax on the labor and product. If this is the correct method what tax exempt form do I need to provide suppliers? I've searched and searched for the correct tax exempt form with no luck. My tax accountant claims I did it correctly last year but according to the DOR she's incorrect. How do you all go about this? Thanks in advance.
If you owned a farm, then yes you can purchase on "Tax Exempt", there is an acreage size but I don't remember that. As an applicator performing a service, you do not need to charge them a sales tax. You only charge sales tax if you are reselling them the product but not as a service, which you are selling them, a service, "Fertilizing".