Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert, Get an Answer ASAP!

Sales Tax Rules

Sales tax is something that most people have heard of, and the majority of people have paid. In fact is some states around the beginning of the school year, people go out and shop in droves on tax free weekend in hopes of saving a few dollars. There are also some states that have no sales tax on certain things and because of this and many more details it causes questions to be raised. Below are questions that people have asked the Experts in regards to sales tax rules.

What is sales tax?

Sales tax is tax that is paid to the state and or local tax authority by an entity for the sale of services and goods. It is often the case that the law requires the entity to collect the tax funds from their customers when they purchase said goods or services. The tax laws may allow the seller to have the tax itemized separately from the price of the goods and services, or it may be allowed to be included in the price of the goods or service. The tax laws may also provide that certain goods and services are exempt from sales tax.

Why can’t a seller buy a product and sell it to a customer without charging sales tax?

The reason that a seller cannot sell a product to a customer without charging sales tax is because no sales tax has been paid upon the item. The seller most commonly buys the product from a wholesaler, paying no sales tax on the item. For the sales tax law to be satisfied the seller must charge the customer sales tax on the item, so that sales tax has been paid. This is not true of all products; there are some products that are sales tax exempt.

Is sales tax applied to a vehicle lease in the state of Virginia?

It is important to note that in the state of Virginia the lessor does not have to be licensed, and is also known as the leasing company. The vehicle that is being leased is titled in the name of the lessor not in the name of the lease, and all fees that are applicable and are due at the time the vehicle is leased by the lessor. It is important to note that lease agreement may make the requirement that the lessee pay these fees. Also after the lease is terminated, if the lessee retains the vehicle, then it will need to be re-titled in the lessee’s name. If the lessee was the one that paid the fees then they will be exempt from paying them again.

In the state of Pennsylvania if a contractor is buying building materials for a educational facility, are the building materials sales tax free?

In Pennsylvania the purchase of building materials by a construction contractor for use in the building of a government agency or a charity that is purely public, or a tax-exempt organization. For the supplies to be exempt of sales tax then the contractor will need to give the supplier an exemption certificate.

Sales tax is the tax that is imposed upon the purchase of goods and services. The reasoning behind entities charging sale tax to its consumers is that the sales tax law must be satisfied and if an entity buys their products from a wholesaler, then there is no sales tax paid. If any individual has any questions regarding sales tax rules they are able to ask the Experts.
Please type your question in the field below

3 verified Tax Professionals are online now

Tax Professionals on JustAnswer are verified through an extensive 8-step process including screening of licenses, certifications, education and/or employment. Learn more

Online
Wallstreet Esq.

Tax Attorney

Doctoral Degree

★★★★★
586 positive reviews
Online
Mark D

Enrolled Agent

Master's Degree

★★★★★
1300 positive reviews
Online
Richard

Tax Attorney

Doctoral Degree

★★★★★
4280 positive reviews
See all Tax Professionals
JustAnswer in the news:
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
Web sites like justanswer.com/legal
...leave nothing to chance.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.