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LegalEagle, LLC, Attorney
Category: Tax
Satisfied Customers: 1473
Experience:  Extensive tax and finance background prior to law school. 5-star legal/homework. New tax profile
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sales tax

Resolved Question:

if i buy a part and the store charges tax on the part can i just bill my customer the total i payed with tax included on invoice without collecting any additional taxes
Submitted: 9 years ago.
Category: Tax
Expert:  Ed Johnson replied 9 years ago.

Dear local,

According to Texas Law, you pay sales tax on the total receipts.

If youi want to avoid passing on the sales tax to your customers, you need to itemize the bill to show the original price and the sales tax seperately.

FYI: If you have a retail sales tax certificate and you purchase parts for resale, then you should be buyhing it without paying sales tax.

 

Customer: replied 9 years ago.
Reply to Ed Johnson's Post: if i buy a gfci and pay the tax to the store and it comes out to 19.47 with the tax the store charged me can i just bill the 19.47 to customer i work for since the tax was already collected by the store
Expert:  LegalEagle, LLC replied 9 years ago.
That was Ed's point, Local Electrician, until you get the Retail Merchant's Certificate so you buy parts WITHOUT paying any tax, you have to pay it and charge your customer for the tax too. You're correct, that's double taxing. With the retail certificate, you can have the tax waived for your purchase since you'll charge it when you sell the product. Make sense?
LegalEagle, LLC, Attorney
Category: Tax
Satisfied Customers: 1473
Experience: Extensive tax and finance background prior to law school. 5-star legal/homework. New tax profile
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