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#157061 - 08/12/05 04:42 AM Consumer Sales Tax in WV
sparky66wv Offline
Member
Registered: 11/17/00
Posts: 2232
Loc: West Virginia
Hey Guys...

What entities are exempt from WV sales tax?

This is not an issue concerning labor sales tax (on service work) but rather for materials on every job.

As I understand it: Churches, Farms, Schools, Gov't and others are tax exempt... Here's the problem...

Turns out my partner's account at the supplier isn't tax exempt; he doesn't add a materials mark-up and would rather pay the tax as he buys. This works well if you don't do any exempt work... Well, the forestry division of the USDA is exempt and will not pay the $450 or so in taxes that are on account (but not paid yet).

I told my partner to go get an expemption form, fill it out and so forth... Now he has two accounts at the supplier, one exempt one not, but the $7800 worth of exempt stuff is still in the wrong account!

ARRRGGGHHH!!!

No one but no one has been any help on this phone wise...

I'm counting on you guys to help me see the light...

Thanks
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-Virgil
Residential/Commercial Inspector
5 Star Inspections
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#157062 - 08/12/05 06:40 AM Re: Consumer Sales Tax in WV
Jps1006 Offline
Member
Registered: 01/22/04
Posts: 615
Loc: Northern IL
Can't you just return the stuff on the one account, and repurchase on the other? Of course not because it is already installed. So buy everything again on the one account, and then return it to the other. Then to save the supplier the hassel of pulling it, maybe they will consider doing a paper transaction for you.

It doesn't sound like there is any light for you to see, but maybe the supplier could use some enlightening. Just tell them the account won't be paid until it is corrected. That's what you are facing, and so them too.

But I'm curious about the contract. How did you agree to do this job where you are submitting your supplier's invoices and they're scrutinizing it? Did you do this time and material?
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#157063 - 08/13/05 12:17 PM Re: Consumer Sales Tax in WV
sparky66wv Offline
Member
Registered: 11/17/00
Posts: 2232
Loc: West Virginia
I'm totally confused... and my past experience as a convenience store owner isn't helping... hmmmm...

According to my partner and the Supplier manager and a tax rep:

We pay taxes period. No one is tax exempt except labor on capital improvement work. If we do work for the gov't, etc. we are to pay the sales tax when we buy and then somehow hide it in the price so that the sales tax line reads "0".

OK... then what are tax exempt accounts for?

For Service Call work where you pay sales tax on both labor and materials so you pay what is totalled tax on invoice to the gov't.

Here's what I had thought:

Taxed accounts are for: if you don't have a mark-up and you only do capital improvement work...

Tax exempt accounts are for: You add a mark-up (just like a conveniecne store) and you owe 6% when sold to the customer (not when you buy... it is for resale) and you add 6% on labor if it is a service call but not if it is a capital improvement. If you do work for a tax exempt entity, no fuss no muss, no tax is owed or paid...

But apparently I am wrong.

Tom, jps, other WV contractors... HELP!!!





[This message has been edited by sparky66wv (edited 08-13-2005).]
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-Virgil
Residential/Commercial Inspector
5 Star Inspections
Member IAEI
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