Is it ok to accept a deal which the seller offers not to charge you for the sales tax? We are in the process of buying an used office equipment. The seller offers that we don't have to pay the sales tax and he will take care it. So is it ok for a buyer to accept a deal which he does not need to pay the sales tax? I remember I saw a banner outside a furniture store before which says 'No sales tax on Sunday'. So does it mean that it's ok for a buyer not to pay the sales tax if the seller will take care it? Thank you.
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Sales Tax
The buyer NEVER pays sales tax...the seller just passes on the sales tax to buyer.
As a buyer,,,put the sales tax issue out of your mind,,,it's the sellers problem to pay sales tax.Confucius say:
He who sits on tack is better off. -
On the other hand,
if the buyer was to be audited by Sales Tax people he has no proof that the sales tax was paid. They would charge him a "Use Tax". All receips should show the sales tax stated separately. Have the seller reduce the sale price and add the sales tax to equal the purchase price.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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We know who really pays!
Some states, like NY, even regulate advertising to prohibit the "no sales tax on Sunday" type of thing. So the ads have a couple of lines of fine print saying that the prices are really discounted by 7.407% before the sales tax of 8.0% is added. Also we can't (with few exceptions) advertise a price that includes the sales tax.
Some service people will also let you not pay the sales tax if you pay in cash and don't demand a receipt. I could speculate as to what their motivation is.Comment
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Would depend on state
Check with your state as sales tax laws vary.
Is the seller in the business of selling goods? I believe that if I sell my used office equip I would not have to charge and remit any sales tax. If they are I would do as Bob suggested and have the seller reduce the sale price and add the sales tax.
However I also agree with RLyman, as a buyer,,,put the sales tax issue out of your mind,,,it's the sellers problem to pay sales tax unless you submitted some type of exemption certificate.Comment
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Just had a sales tax audit of a client
It was ugly. They had bought out some sub-contractors. The paid above market for their equipment and then hired them as employees. They got hit with use tax on the whole works.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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Beer Joints
Beer is subject to sales tax in Texas, but I doubt that if you buy a bottle of beer at Joe's Bar, that he will charge a tax or ring it up on the cash register with any breakdown.
The tax rate is 8.25%, so Joe would divide a $1.00 beer by 1.0825 and report that he sold it for 92.37875ยข.
There is a law in Texas that prohibits you from advertising taxable merchandise, claiming there is no tax on it. But I believe it is OK to sell it without identifying the tax separately. I have a couple of clients who have 100% taxable sales. They just divide their deposits by 1.0825 when they prepare their sales tax. Contractors have a choice between lump-sum contracts on which they pay tax on materials or segregating the materials and the labor portion and charging tax on materials and giving a resale certificate when they buy the supplies to be used on segregated contracts.Comment
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Wisconsin has the same laws concerning taverns, however, you are supposed to post a sign stating "sales tax included". Same w/ vending machinces, near the coin slot if posted "sales tax included" you work backwards to arrive at the sales tax, if not posted you are supposed to add sales tax to the amount collected from the machine.Comment
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Texas doesn't have
>>OK to sell it without identifying the tax separately<<
Since Texas doesn't have state income tax, they like that Schedule A deduction for sales tax. How can they calculate it if tax is not identified? Isn't it true that for most Texans, "beer at Joe's Bar" is the thing they spend the most on?Comment
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