Hopefully one of ya'll can help me
I have a customer that moved down to Florida in 2007. They build custom kitchen cabinets and also build cabinet doors to sale to other cabinet shops. The way we both understood was that when they purchase materials they don't pay sales tax. When they sale the cabinets to the customer they charge sales tax then.
Well it seems this is wrong. Someone told them that other cabinet shops are not charging sales tax. They pay it on the materials only. That since the cabinets are attached to a structure it does not have to be charged to the customer. Is this correct?
Also what about cabinet doors they make and sale to other cabinet shops. Should they be charging them sales tax?
I found some information that seems to support this but I am just not sure. My client is losing business over this. Any input from someone in the Florida area would be greatly appreciated.
Thank you
I have a customer that moved down to Florida in 2007. They build custom kitchen cabinets and also build cabinet doors to sale to other cabinet shops. The way we both understood was that when they purchase materials they don't pay sales tax. When they sale the cabinets to the customer they charge sales tax then.
Well it seems this is wrong. Someone told them that other cabinet shops are not charging sales tax. They pay it on the materials only. That since the cabinets are attached to a structure it does not have to be charged to the customer. Is this correct?
Also what about cabinet doors they make and sale to other cabinet shops. Should they be charging them sales tax?
I found some information that seems to support this but I am just not sure. My client is losing business over this. Any input from someone in the Florida area would be greatly appreciated.
Thank you
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