Just curious, as a selfserve+IBA owner, do we require to have a sales tax permit? Do we charge tax on vending products and report sales tax monthly/quarterly? Im puzzled when the Suppliers charge us tax on the vending product and supplies do we still charge tax to customers and report taxable sales? double taxation?
Sales Tax Permit
- Thread starter txheat
- Start date
pitzerwm
Active member
You need to call your Dept. of Rev. and ask. You might not to use your real name, or you probably will find others from TX if that is where you are from, as each state has their own taxes.
there are a lot of BS regs, don't screw it up, the fines are not worth it.
there are a lot of BS regs, don't screw it up, the fines are not worth it.
MEP001
Well-known member
Nope.txheat said:
You would if you had a sales tax permit. You would buy product tax-exempt and you'd have a decal on each machine noting that a portion of the purchase is for sales tax.txheat said:
If you paid the sales tax on purchase and charged it on sale, you'd pay the difference; otherwise you'd have a permit to purchase your vending tax-exempt.txheat said:
Someone will probably come along and say that I'm wrong, but in Texas you are not required to charge sales tax for vending sales from a machine.
diycarwash
Member
There is no sales tax for car washes in Texas.
What about the vending for car products like disposable towels, air freshners?
I ask this cause i raise the question to our local tax office. They said it is required to have a sales tax permit and report and pay tax for vending. But if the suppliers charge tax on those items upfront why do we still pay and report tax each quarter again? double taxed on same item???? cant phathom their logic.
diycarwash
Member
exactly! thats my point. We have the option to pay the tax at time of purchase from the "wholesaler" or we use our sales tax permit to be exempt from the taxes to later report and file those tax when we took that exemption. It's like a pay "now or later" thing. Personally i rather pay tax to supplier for those products then to deal with those morons in Austin. I email them this question on the 2nd and still waiting for an answer.
All they know is get the sales permit, apply it to purchase to be tax exempt and charge tax to consumer then report and pay those sales tax.
mjwalsh
6 bay SS w/laundromat
Thread Carefully!
They want it on the larger end sale amount. Once the vendor gets your state sale tax permit on file they will adjust their computers to reflect that. When we buy vend items for our Mega Vendor locally sometimes we have to show our sales tax permit that we carry with us to the checkout person.
In our State of North Dakota & I believe in most other Sale Tax states the biggest ticket item is the amount that we buy from other states for equipment etc & bypass the sales tax ---- then --- we have to calculate on their quarterly form what they refer to as "Use Tax".
Audits are not pleasant & may involve some bizarre penalty or threat of penalty & some bizarre interest rate.
That main thing is that you "pick a more winnable fight" The sales tax on the vend items & the use tax items is much less than if it was on all of your gross receipts (which some states have regretfully gone down that even much more drastic road). It is helpful to track & examine your expenses anyway so the extra bookkeeping filing online should not be too much added bookkeeping time. Maintain a good handle on the arithmetic involved & you & other operators in your state will have more credibility --- public relations wise. It is a lot more comfortable being in a position to be able to tell the truth verses what the potential "less truthful" you may be presenting along with or against at a legislative hearing or tax study.
MJ
Txheat,
They want it on the larger end sale amount. Once the vendor gets your state sale tax permit on file they will adjust their computers to reflect that. When we buy vend items for our Mega Vendor locally sometimes we have to show our sales tax permit that we carry with us to the checkout person.
In our State of North Dakota & I believe in most other Sale Tax states the biggest ticket item is the amount that we buy from other states for equipment etc & bypass the sales tax ---- then --- we have to calculate on their quarterly form what they refer to as "Use Tax".
Audits are not pleasant & may involve some bizarre penalty or threat of penalty & some bizarre interest rate.
That main thing is that you "pick a more winnable fight" The sales tax on the vend items & the use tax items is much less than if it was on all of your gross receipts (which some states have regretfully gone down that even much more drastic road). It is helpful to track & examine your expenses anyway so the extra bookkeeping filing online should not be too much added bookkeeping time. Maintain a good handle on the arithmetic involved & you & other operators in your state will have more credibility --- public relations wise. It is a lot more comfortable being in a position to be able to tell the truth verses what the potential "less truthful" you may be presenting along with or against at a legislative hearing or tax study.
MJ
mjwalsh
6 bay SS w/laundromat
Specifics of the specific tax law - political reality tipping of the scale
Just to add to my previous post. In North Dakota, it was just like Mep described at one time here in our particular state. The trouble came when a new tax commissioner was elected & came into town & decided his mandate & interpretation of the law was to include the items from the vending machines even when they were insignificant amounts. Same with the "Use Tax" enforcement at one time. I tried to shed light that "it made everyone in the state a criminal" but apparently us business people are held to a "higher standard" than the woman or man buying personal goods etc for her or his personal expenses out of her or his personal money.
MJ
Just to add to my previous post. In North Dakota, it was just like Mep described at one time here in our particular state. The trouble came when a new tax commissioner was elected & came into town & decided his mandate & interpretation of the law was to include the items from the vending machines even when they were insignificant amounts. Same with the "Use Tax" enforcement at one time. I tried to shed light that "it made everyone in the state a criminal" but apparently us business people are held to a "higher standard" than the woman or man buying personal goods etc for her or his personal expenses out of her or his personal money.
MJ
MEP001
Well-known member
If you want to stick absolutely to the letter of the law, you will still have to pay the tax on the difference between the purchase price for which you bought the product and the resale price to your customers, but as I said before you aren't going to get bugged about sales tax at a self-serve car wash in Texas anytime soon. People routinely order things out-of-state and don't pay sales tax. The way it's set up now, you can't even pay sales tax for such items unless you get a permit. If you get a permit, you'll be required to pay sales use tax on anything you buy out-of-state for the wash, including parts. You will eventually get audited, it's a huge hassle and the fines are big - seems rather pointless for something they aren't going to chase you down for if you just don't get a permit.txheat said:
