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Discussion Starter #1
This just happened to me last week.

I get a call for a price quote. They want a quote for 50/100/200 pieces. Ok, I take a look at my costs and come up with an amount. Call back and give them the cost. Price includes sales tax and delivery.

A few days later I get a call from the same guy. 'You competition is a lot lower.' So I get the name of the place and check out their prices. This is one of those big online places.

Hmmmm.... They are cheaper, a lot cheaper. But wait.....
$50 Set up charge
$50 extra for each additional color
45c/pc extra for each color after the first one
Sales Tax extra
Shipping extra

I call back......

ME: 'Hello mister shop-my-price-around', 'I checked my competition, here are the extras they didn't tell you about'.

PRICE-SHOPPER: 'oh, I didn't know that'

ME: 'Tell you what, I will reduce my price to $X.xx but I need to charge sales tax and shipping in addition to the order' 'My original price included sales tax and free delivery to your location' 'You pick which way you want to go'

PRICE-SHOPPER: 'ok, I will let you know'

To be continued......
 

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A lot of time the shirts are for groups that are not a recognized business operation and all though they may give to there members for 10 each lets say they are not really reselling them as they are not collecting sales tax. Only a business that gives you their sellers permit can resell and collect sales tax. So in most cases you are required to collect sales tax. If not the BOE may collect from you if your audited.
 

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badalou said:
A lot of time the shirts are for groups that are not a recognized business operation and all though they may give to there members for 10 each lets say they are not really reselling them as they are not collecting sales tax. Only a business that gives you their sellers permit can resell and collect sales tax. So in most cases you are required to collect sales tax. If not the BOE may collect from you if your audited.
You are absolutely right Lou!
Just got off the phone with the CA State Board of Equalization.
They said, If you are printing for a client you need to see if your client has a valid Resellers permit - you are responsible for the recordkeeping. If they do then your client is responsible for collecting the sales tax because the shirt is intended for resale.
If they do not have one (they shouldn't be selling anyway.. ) then you are responsible for collecting the tax on the blank shirt + the printing service, so everything in total.
 

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Actually they can deduct the sales tax when they file as an expense. You still have to show the BOE that you sold to a person, business, organization proof that they have a sellers permit. How does the BOE know this a tax exempt organization?
 

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badalou said:
Actually they can deduct the sales tax when they file as an expense. You still have to show the BOE that you sold to a person, business, organization proof that they have a sellers permit. How does the BOE know this a tax exempt organization?
That's why I said you need to get their information. Just like we have resale/sales tax licenses, they have documentation showing that they are ceritifed as a 501.3(c) nonprofit organization. We just get a copy of this info from them and we don't need to charge them sales tax.
 

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Discussion Starter #8
TahoeTomahawk said:
If you are printing (as a service) for a customer, do you need to collect sales tax? I thought the person reselling the item was responsible for collecting the sales tax.
What state are you from?
This is a retail customer so I have to charge them sales tax unless they have it delivered outside of California. Then they have to remit the sales tax themselves to the State we delivered to, at least that is the idea.
 
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