How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barbara Your Own Question
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3610
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
Type Your Tax Question Here...
Barbara is online now
A new question is answered every 9 seconds

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?
Submitted: 2 years ago.
Category: Tax
Expert:  Barbara replied 2 years 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.
Please let me know if you require further information or clarification.
Thank you and best regards,