malaki Posted December 18, 2006 Share Posted December 18, 2006 ok guys need help i got a sales tax license and i want to know how you become tax exempt or is it the same thing i live in PA. any info would be great. Quote Link to comment Share on other sites More sharing options...
Trae Posted December 19, 2006 Share Posted December 19, 2006 Your sales tax license enables you to be tax exempt on your purchases in PA. Just make sure the purchases you make that are exempt pertain to your business in case you get audited. Quote Link to comment Share on other sites More sharing options...
malaki Posted December 19, 2006 Author Share Posted December 19, 2006 cool thanks. how about if i need a new laptop to start my business. Quote Link to comment Share on other sites More sharing options...
David Fields Posted December 19, 2006 Share Posted December 19, 2006 Don't know about PA, but in Texas you are tax exempt only on purchases for resale. Supplies purchased for your business, ie. mfg. office equipment, etc., are not tax exempt. The way it was explained to me was - the state wants its sales tax once, either when you buy something for the business, or when you make something that is then sold. Quote Link to comment Share on other sites More sharing options...
Trae Posted December 19, 2006 Share Posted December 19, 2006 The laptop I'm not sure about. If it's solely for business, you can write it off on your taxes. In PA, if you buy your supplies from the craft store, you can take your tax id # and they will give you a tax exempt card. If you buy from a big supplier, like C&S or Candlewic, they will most likely have you fill out a form Rev-1220, which they keep on record saying you are exempt. A word of advice...if you are a C&S customer, download the form online and mail it to them because they came after me with that form 2 yrs after I gave them my tax ID # saying if they didn't have the form within 10 days they would charge me sales tax on all of my past purchases. Also, if you do any wholesale accounts in PA, you'll have to have them fill out the same form. If you buy supplies out of state that doesn't go directly into the product for sale, like molds, wick pins, melters, etc, you have to pay use tax on it. Hope that helps some. Quote Link to comment Share on other sites More sharing options...
creeksidecandles Posted December 19, 2006 Share Posted December 19, 2006 As the tax exemption form clearly states, tax exemption is not valid for sales. Only if you purchase raw materials for resale purposes would you be tax exempt............which means...buy a case of jars and sell the same case to another customer.......call me an idiot but after being in business for about 30 years and having a minor degree in accounting, I think I'm reading this right.???? http://www.revenue.state.pa.us/revenue/lib/revenue/rev-1220.pdf Quote Link to comment Share on other sites More sharing options...
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