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uptickk
01-23-2014, 11:01 AM
Hello,

I am in the process of starting a new manufacturing business. I will take metal alloy and melt it into a mold and sell the molded alloy. I was wondering if I have to pay sales tax on the purchase of the metal alloy? Sales tax is charged when I sell my product but is it charged on the raw materials used to make my product?

Any help would be greatly appreciated.

Thank you

pandandesign
01-24-2014, 11:34 PM
I would contact the IRS website or actually call them to find out about whether or not you have to pay tax on the purchase of metal alloy. I think there should be a website about this kind of business in which you need to find out which state are you doing the business in. Plus, I wouldn't think you have to pay tax on the purchase on metal alloy but have to pay tax if you sell the product. Again, contact the IRS for regulations and laws about this.