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Author Topic: Avoiding sales tax untill I invoice my customer.  (Read 251 times)
Daleford
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« on: February 23, 2010, 09:50:12 AM »


My title sounds like a scheme but it isn't. I'm mearly asking a question about running a company and having a tax number to use. Where I live I run an auto related company that repairs cars. When I buy a part or materials for a project, I don't pay sales tax. I use my tax number.
I need to buy a set of tires for a C-5 Corvette that I am re-doing and the Tire Rack act like they never heard of this and say they wont honor it. [ I am picking the tires up at one of their warehouses while on a trip to avoid shipping.] I emailed "Luke" twice at Tire Rack, and he never answered me.
Any auto related business owners out there? How do you do it? 
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Twilight Z
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« Reply #1 on: February 23, 2010, 12:45:35 PM »

i just ask if they do wholesale pricing. they put my tax id and company info on file. i order/buy what ever i want. this works at any place that sales wholesale and retail. some companies have a minimum order requirement. i usually dont deal with them. hope that helps
« Last Edit: February 23, 2010, 12:48:04 PM by Twilight Z » Logged
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« Reply #1 on: February 23, 2010, 12:45:35 PM »

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coreywms
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« Reply #2 on: February 23, 2010, 12:49:07 PM »

Taxes are always removed when I present my sales tax documents.  I keep a copy of it in my wallet.  Sometimes they remove sales tax and give me a shop discount.
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ITALIANKNIGHTRIDER
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« Reply #3 on: February 23, 2010, 01:08:00 PM »

i also get shop or jobbers cost when i show my tax id but some time the tire rack charge me half sales tax which come to 4% in my area an others pay 8.5% plus i get a discounted tire price like $27.00-42.00  a tire less than the public 
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bartman
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« Reply #4 on: February 23, 2010, 08:29:59 PM »


My title sounds like a scheme but it isn't. I'm mearly asking a question about running a company and having a tax number to use. Where I live I run an auto related company that repairs cars. When I buy a part or materials for a project, I don't pay sales tax. I use my tax number.
I need to buy a set of tires for a C-5 Corvette that I am re-doing and the Tire Rack act like they never heard of this and say they wont honor it. [ I am picking the tires up at one of their warehouses while on a trip to avoid shipping.] I emailed "Luke" twice at Tire Rack, and he never answered me.
Any auto related business owners out there? How do you do it? 


I've never had an issue.  I don't use tire rack but maybe they don't have a wholesale policy.  To do wholesale they "have" to track everyone they did not collect sales tax on by getting you to fill out a form and usually get a copy of your retail license.  Sorry I just read you are in the auto business so you know how it works.  Sorry.  My guess is tire rack or the store you are dealing with do not offer wholesale pricing.  Where I am located, I deal with two or three tire shops and get discount pricing and no sales tax.  Of course either you or your customer will have to pay it later.  Here it is not worth trying to avoid paying.  If they audit you and catch you it is going to be bad, real bad.  I would try to find a tire shop who cater to wholesale accounts.
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Daleford
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« Reply #5 on: February 24, 2010, 06:47:12 AM »

Thanks for the input.   I finally talked to the right guy at Tire Rack.   I can buy tax free with my tax number but I have to set up a "buyer wholesale account".   Too much trouble for a set of tires !!!    I'll pay the sales tax......being Canadian I am very used to this!
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