sales tax when printing for someone else to resell? (PA)
I have a woman interested in out sourcing all her screen printing needs to me, which is of course exciting as it may result in a lot of business for me. We're in the same state (Pennsylvania), so I assume I'd have to charge her sales tax on my services/products, but was curious if anyone knew more about this, and if there was any way to get around this tax? I also think she'd have to charge and remit sales tax when she resold the items. Anyone, especially some one in Pennsylvania, know much about this?
Thanks
Re: sales tax when printing for someone else to resell? (PA)
Stuart,
I'm not in PA nor am I an attorney, but I can tell you the way it works in GA. If my customer is going to resell the items, then I have them complete a Form ST-5. This is Georgia's reseller's exemption certificate. The form allows a retail dealer to purchase tangible personal property for purposes of resale tax exemption. The form must be completed in its entirety and presented at the time of sale to qualify as an exempt transaction. I DO NOT charge them sales tax. They are responsible for charging tax when a consumer purchases the product. I must file a sales tax form with the state every month, and there is a place on the form for such transactions. I'm sure most states have a similar process. Otherwise tax would be charged twice on the same items (once when you sold it to her and again when she sells it).
Re: sales tax when printing for someone else to resell? (PA)
Quote:
Originally Posted by ohbrother
Stuart,
I'm not in PA nor am I an attorney, but I can tell you the way it works in GA. If my customer is going to resell the items, then I have them complete a Form ST-5. This is Georgia's reseller's exemption certificate. The form allows a retail dealer to purchase tangible personal property for purposes of resale tax exemption. The form must be completed in its entirety and presented at the time of sale to qualify as an exempt transaction. I DO NOT charge them sales tax. They are responsible for charging tax when a consumer purchases the product. I must file a sales tax form with the state every month, and there is a place on the form for such transactions. I'm sure most states have a similar process. Otherwise tax would be charged twice on the same items (once when you sold it to her and again when she sells it).
Re: sales tax when printing for someone else to resell? (PA)
Quote:
Originally Posted by brent
I have a woman interested in out sourcing all her screen printing needs to me, which is of course exciting as it may result in a lot of business for me. We're in the same state (Pennsylvania), so I assume I'd have to charge her sales tax on my services/products, but was curious if anyone knew more about this, and if there was any way to get around this tax? I also think she'd have to charge and remit sales tax when she resold the items. Anyone, especially some one in Pennsylvania, know much about this?
Thanks
Hi, did you figure out the answer to this? I'm in PA as well, and wondering, since we don't collect sales tax on clothes, do I have to collect sales tax when I sell a tee shirt? It doesn't seem to make sense to? Thanks if you have any insight for me, much appreciated. Best regards, Kelly
Re: sales tax when printing for someone else to resell? (PA)
Generally you do not charge sales tax on wholesale orders, only the last sales does the sales tax. Check with your taxing authority for sure. Get her sellers permit and validate that it is current. Have her sign an agreement that she is reselling the items and will charge sales tax for retail sales and you shoudl be good to go.
Re: sales tax when printing for someone else to resell? (PA)
Just bumping this with a new question: Do I have to file or pay sales tax when doing custom orders? I guess I could consider it wholesale, cause I'm not selling them as retail, just doing custom work for people, who either resell or use them for promotion, etc.
The state sent me a letter saying I need to file my sales tax return, but I'm thinking I don't have to pay any (of course I'll still file it, and just say zero) "A return must be filed for each period whether or not a tax liability is due."
Thanks in advance.
Re: sales tax when printing for someone else to resell? (PA)
Stuart.. Ill tell ya how it goes in calif..
If i print shirts for someone (or make anything that i sell them).. If they are gonna resell i do not have to charge tax if they have a tax resale number.. If they dont have that number.. I still have to charge tax.
If im selling to someone for promotions and they are not reselling .. but giving away.. I should charge tax..
Re: sales tax when printing for someone else to resell? (PA)
Hi Stuart, alot of times you can give a local accountant a call with a quick question like that, and you can get an answer that works for your area. I had a few Q's answered that way. I guess they figure if they help you and your are comfortable with them, you might hire them for something, like a tax return. This doesn't have to do with the sales tax, but when I was reading on taxes for myself, I think I saw taxes that Philly has that the rest of us don't, so it's probably best to ask an accountant near you so you are on the right side of things and you don't have to wonder about it coming back later on. Good luck, Stuart.
Re: sales tax when printing for someone else to resell? (PA)
Wholesalers do not collect tax, only the retailer does (assuming retailer has sales tax license). In the state of Pennsylvania, clothing is exempt from sales tax anyway.
Re: sales tax when printing for someone else to resell? (PA)
I am also knew to selling in PA. What I am trying to figure out is the silk screen/embroidery sales tax. The actual sale of the shirt or apparel item is not taxable in the State of PA because clothing is not taxable. However after speaking with the PA Dept of Taxation it seems that somewhere along the process silk screen and embroidery should be taxed which means if you invoice (ex. shirt) then that would not be taxed retail because it is apparel. However, If you invoice a shirt on one line of the invoice and Silk Screen on a separate line - sales tax would be applied to the Silk Screen. So now here is the issue if you invoice Shirt only on the invoice then where is the state getting the money for sales tax on the Silk Screen/embroidery??? I would say you are going to need to charge sales tax to the person you are silk screening for (your customer) if they are not going to resale and charge for the silk screening/embroidery separate on their invoice with tax.
Help me if there is a different way to interpret this process because it seems very complicated and difficult to be competitive if some businesses are charging sales tax and others are not.
Re: sales tax when printing for someone else to resell? (PA)
Quote:
Originally Posted by greyhorsewoman
Services are taxable.
That may be true in some cases, but not all. I'm in PA, too. I'd say, from what I've experienced, it depends on what the service is.
I have another business that is a service. I worked with my SBDC and they were able to get me directly to the correct PA tax people to ask if I need to file tax on my services, and the tax people said the service I provide is not a taxable service. (Of course, I was thrilled to say the least!!)
So I'd say whoever is wondering about that should contact the correct people in the state of PA that handles that, or ask an accountant.
Re: sales tax when printing for someone else to resell? (PA)
Go to this link:
It is the booklet available for PA gov on sale tax. And girlsndollz is right. I amend my statement to MOST services in PA are taxable.
PA TAX EXEMPT SALES
The following sales are not subject to tax:
The services of repairing, altering, mending, pressing, fitting, dyeing,
laundering, dry cleaning, or cleaning wearing apparel including
formal wear and shoes. Alterations on formal wear, when purchased
in conjunction with the original formal wear purchase, are taxable.
The services of laundering or dry cleaning of wearing apparel or
household goods when performed by coin operated equipment.
Residential use of steam; natural, manufactured, and bottled
gas; fuel oil; electricity; basic telephone service, and subscriber
line charges.
Gasoline on which Liquid Fuels or Fuel Use Tax is paid.
Wrapping supplies when use is incidental to delivery of property.
Drugs or medical supplies (See Category 16.)
Coal
Grocery store food
Water
Wearing apparel, except formal apparel, sporting goods and clothing,
and real or imitation fur articles
So much information is available on the web these days. Isn't it wonderful?
Re: sales tax when printing for someone else to resell? (PA)
Quote:
Originally Posted by greyhorsewoman
So much information is available on the web these days. Isn't it wonderful?
It is, I do love the web for these things.
My service isn't listed in there. It wasn't listed anywhere (if I remember correctly). But a phone call was all it took. I know that "somewhere" buried in this office is the phone number. If the poster of this Q needs it and can't locate it, I can try to "dig'' it up. A call to the local Small Business Development Center will help do the same thing. That is who I worked with and, of course, being what they do, they have all the correct direct numbers.
This is a discussion about sales tax when printing for someone else to resell? (PA) that was posted in the General T-Shirt Selling Discussion section of the forums.
sales tax when printing for someone else to resell? (PA) 
Re: sales tax when printing for someone else to resell? (PA) 
