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Sales Tax Question

Discussion in 'Business Operations' started by BonesMalone, Dec 1, 2007.

  1. BonesMalone

    BonesMalone LawnSite Member
    Posts: 46

    If I pay sales tax on my materials I purchase such as fertilizer do I still need to charge sales tax to the customer at the time of application. I have heard if I pay sales tax on my purchase I do not have to charge the customer. Any input would be helpful.
  2. JimmyStew

    JimmyStew LawnSite Senior Member
    Posts: 367

    I think you are safe provided you charge your customer your cost for the materials. If you mark them up at all, you need to charge tax on the additional amount.
  3. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    you need to check your laws,,,

    You dont need to charge tax, you collect it. it's a service that you have to pay for
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    Ditto to what bohiaa said ... If you are collecting sales tax already, then you have established contacts at the appropriate agency that governs the tax rules. They are your source of information, not speculation on this Forum about what to do, or not to do.
  5. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    Buy the material tax exempt and list it out on the invoice.
  6. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    You still have to charge them for the service you provided.

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