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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I have a business that sell cabinetry and I currently purchase

Customer Question

I have a business that sell cabinetry and I currently purchase my product from this one factory that produce all my products. I was told if the factory pays the sales tax on all his raw materials. I shouldn't charge tax to my client (end users) because that would consider double taxation. If this correct? or should I also charge tax to my clients?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.


Hi and welcome to Just Answer!
That is not correct - if you sell goods to end users - you are required to charge sales tax unless these sales are specifically exempted.
If you pay sales tax to wholesalers - and these taxes are specifically listed on the invoice - you will deduct that amount from whatever you need to remit to taxing authorities.
If sales taxes are not listed on the invoice - it is considered as not paid even the price might include some build-in taxes.