Ask Experts Questions for FREE Help !
Ask
    john4473's Avatar
    john4473 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 23, 2012, 12:42 PM
    Is there sales tax on Direct Mail pieces that customer never takes possession of?
    We have a customer who mails letters to perspective clients locally. We print and mail the letters directly to customer's perspective clients. She (the customer) believes there should be sales tax charged on these letters.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 23, 2012, 01:21 PM
    Charged to HER or charged to YOU?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    Apr 23, 2012, 01:33 PM
    There is no sales tax on the labor of printing, ( where I am at anyway) there is no sales tax on postage, if you are supplying the paper or postage cards, there is sales tax on that.
    ** I assume you are billing for all parts of the work separate.

    You the seller of the material will owe the sales tax and if you don't bill the buyer, that is more your issue, they buyer while they should be paying it, if they don't, you as the seller would owe the tax on the goods sold anyway.
    john4473's Avatar
    john4473 Posts: 3, Reputation: 1
    New Member
    		  
    #4

    Apr 23, 2012, 02:21 PM
    Charged to her...
    john4473's Avatar
    john4473 Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Apr 23, 2012, 02:22 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Charged to HER or charged to YOU?
    Charged to HER..
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Apr 23, 2012, 02:38 PM
    I agree with Fr Chuck's assessment; no sales tax is due.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #7

    Apr 24, 2012, 05:59 AM
    Whether sales tax is to be paid on labor is dependent on the tax laws of the particular state and/or municipality where the business is located. According to a Wikipedia article on sales taxes:

    "Most states... tax services that are an integral part of producing goods, such as printing or cabinet making.."

    Sales taxes in the United States - Wikipedia, the free encyclopedia

    So john4473: where is the printing business located?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How we make journal entries of input sales tax and output sales tax? [ 1 Answers ]

Sales tax has 3 terms No. 1- input tax 2. Output tax & 3 net Tax If the company has purchased materials from within the State that tax given is considered as input tax and if Company has sold materials within the state or outside the State and charged the tax rate then it considered as output...

A customer calls in with an e-mail issue. Mail flow is working internally, and has [ 0 Answers ]

. A customer calls in with an e-mail issue. Mail flow is working internally, and has been validated already technically. The user is having trouble sending an e-mail to a particular user on a large e-mail hosting service like Yahoo or G-Mail. The SMTP bounce back error is an undeliverable 5.3.0. It...

Landlord takes possession technicality? [ 5 Answers ]

I'd like to clarify what my parents, the Florida LLs in this story, understand. They have an eviction lawyer, but can only communicate with his front desk and what they're saying doesn't make sense to me (or my parents are only hearing what they want to hear). Scenario: Tenant is now four...

View more questions Search