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?
What state are you from?
You are absolutely right Lou!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.
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.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?
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.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?