Need Help tax exemption responsibilities (TX)

[T_K]

I have my first order under my own business from a tax exempt organization. What are my responsibilities in processing and keeping records of this regarding the sales tax exemption? I'm not sure what I need to request from them, or what info I need to keep myself. I'm in Texas, so that's the specific tax law I'm looking at.

 

[2B]

there are 2 forms of tax exemption in TX

• resell purpose
• exemption (agriculture, non-profit, charity, church, etc.)

depending on the type of exemption determines the form needed
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiVwNS45N3ZAhUs6oMKHfKMCTAQFggsMAA&url=https://comptroller.texas.gov/forms/01-339.pdf&usg=AOvVaw07cQz_XflNWsM5F_I7Jos9

the form needs to be completed in the entirety, both your information and the buyers information.
once completed you keep it on file.

 

[gnemmas]

Tax exempt might not mean Sale Tax exempt. Generally if people buying products to re-sell, when presented with a Re-sell certificate, then he is exempt for sales tax.

Car sales people like to argue that he has a re-sell permit and try to convince us not to charge him sales tax. I reply that we have a re-sell permit too, do you not charge me sales tax when I buy car from you?

 

[GaSouthpaw]

Not in Texas, but I know here in Georgia, we have to have a copy of the buyer's tax exemption forms on file to prove they were legit, and copies are included in revenue reports (if I recall correctly).

 

[Solventinkjet]

Here in Colorado we are required to keep a physical copy of their state sales tax license. Even if they have a sales tax license we still have to charge tax on printer parts because they don't end up in the end product. Check out your local laws. It's going to be different everywhere.

 

[Joe House]

I would check with your CPA with regards to the specifics as they vary from state to state and he would be the most knowledgeable about your particular situation. You're asking a bunch of us who can't even agree on what the best printer is or what the best wrap film is. Get this answer from an expert.

 

[Texas_Signmaker]

I keep a digital copy of all of mine on my computer and backed up online. When you file your sales tax report (I use webfile) it will ask you "All Sales" and then "Taxable Sales" and you separate it there. If they are claiming sales tax exempt they should know what they need to send you. It's either a "RESELLER" form or a "EXEMPTION" letter from the IRS

 

[heyskull]

I do not know how this works in the US.
But in the UK if I have a client who states they are Tax exempt (Charities, etc.).
I will still issue a taxed invoice and expect this to be paid in full inclusive of the tax.
If they represent this to their accountant they should be able to claim back the tax on the work done.
Strangely the amount of charities I have dealt with still want me to take it off at invoice as they "don't have time for all that stuff" is amazing.
If their has been a mistake Inland revenue will sort it at their end not mine.

SC

 

[AF]

Here in California, it is best to charge sales tax regardless if they have a resell permit and the item is a resell item. In fact, we find it is best to send the city, county and state tax collectors additional money to keep them off our back. Usually chase those payoffs with strategic political contributions for extra insurance. /sarc