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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2828
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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My sales organization, Maxtrax Fed ID# 75-2443935, has

Customer Question

My sales organization, Maxtrax Fed ID# ***** has started supplying value-added to our agriculture customers for water sprinkler devices used by the farmers. When I buy parts from a supplier do I pay a tax on the parts that I purchase?
Will this action of supplying a value-added service require me to get a tax permit from the state of Texas?
Thanks,
Walter
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Hi, Walter
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
I assume you are asking if the parts you purchase that you include in your service to your customers are subject to sales tax in Texas. If I am misunderstanding your question, please let me know.
Items purchased for resale are exempt from sales tax, but you should register for a resale certificate so you can present it to the supplier so they will not charge sales tax.
http://comptroller.texas.gov/taxinfo/sales/faq_resale.html
Please let me know if you require further information or clarification.
Thank you and best regards,
Barb

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