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View Full Version : I run a service business. I purchased an item for a customer but can't collect tax.



Derpenstein
10-12-2015, 04:24 PM
I operate a small computer consulting business. I do not have a permit to collect sales tax in my state. I recently purchased an item for a customer in a pinch, and now I'm not sure how to bill for the item. I purchased the item over the internet so I have not paid sales tax on the item. Can I write it up as an interest free loan to my client in the amount of the item?

kanika321
10-28-2015, 04:58 AM
It is wise to charge it's original cost rather than including sales tax.

Chris_Tax
09-03-2016, 05:16 PM
This item need to be sales taxed taxed. I would include it on your income taxes as use tax. This is for purchased you buy on the internet. I would charge the customer this amount. You have documentation, you did the best you could with your state

grosa001
12-08-2016, 10:56 PM
This item need to be sales taxed taxed. I would include it on your income taxes as use tax. This is for purchased you buy on the internet. I would charge the customer this amount. You have documentation, you did the best you could with your state

I agree - don't know what state you're in but as far as I know, services are always subject to sales tax. If you don't have a permit, that means you need to get one. Filing is easy these days, its all online