Real quick...I hope. When your doing a government job, they don't pay taxes. Now, if I go buy supplies for said government job I pay taxes on materials or use my tax id and not pay taxes at the moment. But, I'll eventually have to pay taxes on those materials right? Or is there something else I'm missing? I'd ask my accountant.......but I have yet to get one yet so I figured you folks on here would be the best. Thank you again....
Shawn
You do not pay the tax as when your sales tax is figured each month the governmental jobs (or farm jobs where they have a farm tax #)
will be shown as an exemption.
Griff
I'm not sure about other states but in Georgia you have to apply for sales tax # and then you report and pay the sales tax you have collected every month. If your customer is tax exempt like the govt. they are supposed to give you a certificate of exemption .
My info won't help You much, but... In the '80s in Pensylvania, If You were sales tax exempt as a manufacturing operation, You did not have to pay sales tax on materials, when You got them , or at the end of the year. You had to collect and then submit the sales tax on the finished product, unless it was sold to a tax exempt customer. I think this is still the case in Pa.
I need a darn accountant is what I need...hahaha!!
It's really very simple. Just buy the material you need. ie: Rods etc... List it on your invoice as Labor. Just bump your labor cost to cover your Rods. The Job you are doing it is not a large amount of money anyway. There is no tax on Labor so dont worry about the Tax
Here in South Dakota, you would use you tax ID at the time of purchase and then when you fill your return show the Government exemption.
Pretty much the same as the other guys said.
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