So in our area we do a ton with school, church, boy scouts. Basically we have all of the non profits. We do have tax exempt certs from these organizations but is that enough? Is there a way to turn the sales tax issue on them where they need to apply for their money back. It gets frustrating when to charge tax and when not to. We run in to issues such as is this for the teachers lunch? Are you reselling these? Is this just a bunch of kids still at school? Any info would help. Thanks
I believe a CPA would be the best equipped to answer these questions.
In Idaho if they are a non profit or they are re-selling the product then you do not charge sales tax & it goes toward your sales as non taxable sales. All the state requires is a copy of the tax exempt which you say you already have. They should not charge sales tax since they are a non profit organization.
Being exempt from income tax is different from being exempt from sales tax.
In NC, non profits mist pay sales tax, but can then file a claim once a year for a refund or that sales tax
I’m in NY, It is their responsibility to let me know if it is tax-exempt before the bill is finalized, I don’t ask. after that I cant issue a refund because it is already rung through, but they do have the ability to file and get there tax back from the state.
In Colorado we take a copy of the exempt certificate. Our POS handles exempt easily. As long as they tell us before we conplete the sale it is easy to handle. If they tell us afterwards we would have to cancel the order and re-ring it. We have done it to accomodate them but it is a hassle.
The rule on things like the teachers question is that the payment for the pizza MUST be from the exempt entity. It does not matter where the order is delivered. In other words if the school buys the pizza it is exempt. If the teachers buy the pizza it isn’t even if delivered to the campus. If the church buys the pizza it is exempt, if the kids in the youth group buy it is not. etc etc