North Carolina Sales Tax

[JoshinNC]

I agree wholeheartedly

NC does not care whether you have already paid sales tax on the purchase of inventory for resale. Taxpayer should not have paid that tax, but it is not the DOR's problem that it was paid. Taxpayer's responsibility is to pay sales tax on the sales of product that they sell to customers. I have been through this with a revenue agent with a plumber (new client at the time) who felt like they didn't need to charge or pay sales tax to the state because they paid sales tax when they purchased inventory.

NCDOR does not care if sales tax was paid on the purchase from GE, and sales tax is due on the sale to the final customer. There should be an itemized invoice with labor and materials separated, and sales tax charged on the materials. Going back to GE and asking for a refund is possible, but the sales tax was due on the FINAL customer (end user) sale, whether it was collected or not.

[erchess]

Now I am really confused

I called the NC Practioners' Hotline and was assured that if my client does not invoice separately for parts and labor but simply has one price for which the system is installed in any home, then it is appropriate for him to pay sales tax when he buys the parts and not charge sales tax to his customers. Now did I just end up with a trainee who knows less about the matter than we do or can I rely on her advice. (Course I realize I can rely on it, what I mean is, will my client and I get in trouble if I do?)

[JoshinNC]

call back and ask the same question

I called the NC Practioners' Hotline and was assured that if my client does not invoice separately for parts and labor but simply has one price for which the system is installed in any home, then it is appropriate for him to pay sales tax when he buys the parts and not charge sales tax to his customers. Now did I just end up with a trainee who knows less about the matter than we do or can I rely on her advice. (Course I realize I can rely on it, what I mean is, will my client and I get in trouble if I do?)

if you get the same answer ask for a GS reference to CYA

[BOB W]

I called the NC Practioners' Hotline and was assured that if my client does not invoice separately for parts and labor but simply has one price for which the system is installed in any home, then it is appropriate for him to pay sales tax when he buys the parts and not charge sales tax to his customers. Now did I just end up with a trainee who knows less about the matter than we do or can I rely on her advice. (Course I realize I can rely on it, what I mean is, will my client and I get in trouble if I do?)

Like I said in a previous post, that is the way it is done in NY also...............One price non-itemized invoice with ST paid on materials when purchased by the contractor. GE did know what it was doing.