Sales tax collecting?
February 26, 2011 5:47 AM Subscribe
In business - Is it true that if you pay sales tax on your materials you do not have to charge to your customers?
posted by Snackpants to Work & Money (8 answers total) 3 users marked this as a favorite
I work for a construction materials company that has multiple out of state vendors and customers. In some cases, we will have one job in a state and wont see another for years. I'm not sure if it matters, but we drop ship the materials so we do not keep an inventory.
Someone just told me that if we pay sales tax on our materials when we purchase them, we do not have to charge our customers and file the taxes. Is this true? What if the vendor is in a different state than the customer? If it is true and we don't have to file, do we still have to register to do business in the customer's state?