I need to pay use tax on an item the company purchased origianlly using a resale certificate and no tax was charged because usually every item we purchase from them is resold. In this case, we used the product. When I calculate the amount of tax due, do I use the price I paid for the item ($32.80), or the price I paid for the item plus shipping ($46.47). I'm in TN if that helps. Thanks!
2007-11-15 08:48:19 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Was all of the shipping just for that one item? If not, allocate the shipping among the items received.
There seems to be a difference in the taxability of shipping in Tennessee. Shipping "FOB Origin" is nontaxable. Shipping "FOB Destination" is taxable. After all these years, I am still not 100% sure on the difference. Just to be safe call it FOB Destination and pay the use tax on the shipping.
One other way to check is to see how the tax was calculated on other supplies you have ordered in the past. Pull some old invoices where tax was charged and back in to the number. That way, you should be able to see if it was calculated including shipping or not.
2007-11-15 08:57:37 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
If shipping was stated separately on the receipt, you should not pay tax on the shipping. If the shipping was somehow included with the item, then you would. I'm in Florida though. May also depend on if the item needs to be installed or not, but it's probably not an issue.
2007-11-15 08:51:56 · answer #2 · answered by cashmaker81 6 · 1⤊ 0⤋
Multiply the cost situations a million.0.5 to get the recent entire. (it is the comparable as multiplying the cost situations 6.5 p.c. and then including that quantity to the cost.) EDIT: the occasion on your e book would not instruct a tax of 6.5 p.c.. If the unique fee is $seventy two.24, and the tax is $4.33, then that could be a 6 p.c. tax, no longer 6.5.
2016-10-16 21:15:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋