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Well in florida, you would be in big trouble with Dept of Revenue.  The amount of tax due is more at POS than when you purchase it.  They call it tax fraud.  Many do it and don't get caught, like me I drive fast, but I know I am wrong.  The penalties for those caught is rough.

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As others have mentioned, the tax exemption simply makes you exempt from paying sales tax **WHEN** you are going to be reselling the product to the consumer later, but you are OBLIGATED to pay sales tax on the SELLING price.  Regardless of what that can of soda cost you, or whatever is taxable in your state, you must pay the sales tax based off of how much you sold it for.  For this reason, my accounts are separated by machine.  Snacks are not taxable here, but sodas and many other beverages are.  I simply add up my soda machine sales, deduct water sales (non taxable), and calculate the sales tax per county.

 

1 hour ago, cvending said:

Tax exempt purchases allows you to purchase tax free. When you sell through vending machines, your selling price includes sales tax. Therefore a $1 vend in actuality is .93 selling price and .07 tax.(Ohio tax rate). That tax must be forwarded to the appropriate agency monthly

You're in Ohio? I don't remember that.  Where are you?

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Oh man taxes is ridiculous. I have decided to just eat it, pay on non-taxable items like water, etc... Until it becomes worth my time to study tax statutes and the savings are substantial....

In a prior life at a very successful, I once told my boss/partner that ANYONE and EVERYONE would save money if they spent the time to learn tax laws and all things regarding it...

It was true and he acknowledged it as such. It's just - who has the time...

If there were a vending-specialist-accountant... That person would have a niche

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1 hour ago, cvending said:

Youngstown, Warren, Salem, Boardman and East Liverpool are  known cities. Counties all border PA state line

That's where I grew up, in North Jackson. Worked in Warren for AVI in the 1980s, and graduate of YSU.

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11 hours ago, cvending said:

Chris, we are in Mahoning, Trumbull & Columbiana Counties. How about you?

 

12 hours ago, AngryChris said:

As others have mentioned, the tax exemption simply makes you exempt from paying sales tax **WHEN** you are going to be reselling the product to the consumer later, but you are OBLIGATED to pay sales tax on the SELLING price.  Regardless of what that can of soda cost you, or whatever is taxable in your state, you must pay the sales tax based off of how much you sold it for.  For this reason, my accounts are separated by machine.  Snacks are not taxable here, but sodas and many other beverages are.  I simply add up my soda machine sales, deduct water sales (non taxable), and calculate the sales tax per county.

 

You're in Ohio? I don't remember that.  Where are you?

So here's a question for my Ohio friends.  I'm trying to figure out the Ohio sales tax and I've been getting different answers from everyone.  Up here in Michigan, there is no tax on packaged foods, so sales tax on vending (and especially honor snacks) is not a concern.  We've been looking at branching out into Sylvania and northern Toledo, but I want to understand the Ohio sales tax first.  So...reading your post Chris, am I to understand that there is NO sales tax on vending (chips, candy, cookies, etc), just on soda?  I've had some vendors tell me that sales tax was due on all, and I've had some say there's no sales tax on any vending.  Reading the tax law is like trying to read any government document (USELESS!...LOL!).  And then to complicate things, each county has a different tax rate.  What's up with that, my Buckeye friends?!  ANY information would be GREATLY appreciacted.  Thanks guys! :) 

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For typical vending (micro markets could be different in specific circumstances), snacks are non taxable but sugary drinks are taxable. Water is not. Juices have some exceptions but probably not worth the time to account for.  Every county has a different rate. Typically, they are around 7%. There's a base state rate and the counties add their own rate in from what I understand. 

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3 hours ago, AngryChris said:

You pay through Ohio business gateway. 

Cool!  Thanks Chris!  I believe there is also the CAT tax that we would need to register for ( which I believe is the Ohio equivalent to our Michigan Business Tax; only a hell of alot more friendlier...lol).  That helps alot! :) 

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On 6/27/2017 at 10:47 PM, Sgolembiewski0903 said:

If there were a vending-specialist-accountant... That person would have a niche

Yes they would, but sales tax varies from state to state and sometimes even between counties and cities.  But the most universal is that sales tax is collected and paid by the final retailer.  Europe uses VAT "Value Added Tax", which is added in and paid at each step in the supply chain.  It hides the total amount of tax from the final consumer.

On 6/28/2017 at 5:04 PM, Corvus Corax said:

They would tax the air and sky if they could figure out how.

You mean they haven't?  Sure seems like it to me sometimes!

 

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4 hours ago, Corvus Corax said:

The VAT is so crooked, adds 17.5% everytime something changes hand

No, you misunderstand VAT.

If you are a reseller you can opt to buy VAT free (with a valid tax number) or pay the VAT and claim it back when you do your VAT return. It's just like you buying sales tax exempt or retail, then reselling it at a profit. The end price determines the amount of VAT/ Sales Tax due to the government in total.

This means you may need to remit the total VAT if you bought VAT exempt, or it could mean you remit the difference between the VAT on the final price less the VAT that has already been paid on your buying price.

Item cost $50, VAT 17.5% , selling price $100

buy $50 tax exempt --> sell $100 --> VAT due to govt by you $17.50

buy $58.75 includes 8.75 VAT paid by seller to Govt --> sell $100 --> VAT due due to govt by you $8.75

 

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On 7/1/2017 at 2:00 PM, Southeast Treats said:

Yes they would, but sales tax varies from state to state and sometimes even between counties and cities.  But the most universal is that sales tax is collected and paid by the final retailer.  Europe uses VAT "Value Added Tax", which is added in and paid at each step in the supply chain.  It hides the total amount of tax from the final consumer.

You mean they haven't?  Sure seems like it to me sometimes!

 

I believe that, considering how many "free lunches" they give over there in Europe. in Europe, the saying "there is no such thing s a free lunch" isn't that true! ....

 

SMH - Taxed at EVERY part of the supply chain, SMH SMH SMH WHat is the world coming to

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22 hours ago, falls said:

No, you misunderstand VAT.

If you are a reseller you can opt to buy VAT free (with a valid tax number) or pay the VAT and claim it back when you do your VAT return. It's just like you buying sales tax exempt or retail, then reselling it at a profit. The end price determines the amount of VAT/ Sales Tax due to the government in total.

This means you may need to remit the total VAT if you bought VAT exempt, or it could mean you remit the difference between the VAT on the final price less the VAT that has already been paid on your buying price.

Item cost $50, VAT 17.5% , selling price $100

buy $50 tax exempt --> sell $100 --> VAT due to govt by you $17.50

buy $58.75 includes 8.75 VAT paid by seller to Govt --> sell $100 --> VAT due due to govt by you $8.75

 

And the funny this is: *captain obvious drumroll please.......................*

People over there, and everywhere, still complain that businesses don't pay enough taxes!!!!

 

SMH... It's not the individual's income tax that supports the finances for massive governmental spending, it's the tax you "don't see" when you buy anything, i.e. coffee, fuel, furniture, list goes on and on.... And who fronts that bill (us businesses).... yet people who don't understand running a business think EVERYDAY that business owners are greedy scumbags... ugh...

Edited by Sgolembiewski0903
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It was a long road to feeling comfortable and established... but I am nearing the end...

 

Preface to everything: My Dad has owned a business since I was in Kindergarten.   I HAVE NEVER UNDERSTOOD EVERYTHING HE HAS TOLD ME until I started my own business.   Bottom line about owning a business is/are:

  • It requires you taking a massive risk, multiply that risk by 100 if you have a family
    • You have to spend money to make money, meaning if you wantto grow in this business, you will have to keep spending for quite a while, until you get established..... if you think even $30k  is a lot to get a legitimate vending business established.... it might be... but just get ready for when you need more machines.... ***Cheap bx truck - $4500 *** Marketing Matsss and Decals for ox truck  - $1200 *** Service calls and time spent learning - Priceless *** Office materials, Quickbooks, learning to do Quickbooks - $500+ *** Using your good credit score to establish good business credit - 700+ down to 600+ *** All the other misc. time and starup fees (i.e. regulatory, storage, DMV, etc.) - about as much as everything mentioned combined
  • People will try to "screw" you over every day, and will feel no shame when they do... leading into:
  • Running a business is the definition of "school of hard knocks" - you will suffer hard knocks, again and again and again
  • Running a business is expensive, sure it might ound easy selling a candy bar.... but consider this: 1) Machines 2) Vehicle and general liabiltit insurance 3) taxes 4) repair bills 5) marketing materials 6) Supplies to run your route properly (tools, dollies, box truck, shelving, etc.) 7) Quickbooks - the list GOESz ON AND ON
  • Learning the business in itself - TGF the Internet!!
  • IN THE VENDING BUSINESS - YOU DO NOT MAKE A LOT OF MONEY FOR QUITE A WHILE, SO YOU SPEND $10'S OF $1000'S OF DOLLARS TO MAKE LESS THAN $1000/MONTH!!!!

 

Funny thing is... How much taxes do most European governments need? 

They are relatively small countries, small economies/militaries (with regards to spending), relatively small infrastructure, etc... where's that money going?!?! I mean come on, how many more BiridgeUpgrades does Luxembourg need until thy realize that they haven't had a bridge collapse in 50 years (might be exaggerated, but it still my point)!?!?

The answer I presume is for what the "majority" voted for, granted the "majority" of the "majority" probably discounts the risk and work-ethic of business owners by a MASSIVE AMOUNT.   

 

The universal truth of people on this forum:  Unless you won the lottery or had some insane inheritance (and I assume for the most part, if you had a big inheritance you wouldn't be doing vending machines... WE ALL WORKED HARD FOR OUR MONEY/BUSINESSES, WE ALL SAVED ACCORDINGLY BE WHERE WE ARE TODAY, WE ALL MADE SACRIFICES TO HAVE OUR OWN VENDING ROUTE!!!! ........................................It's wrong that us, the hardest workers in the world (business owners) have to pay more taxes than those  who indulge in the pleasure of working for someone else, and never having to stress about losing their entire bank account at the job!!!!

I bet you anything the "majority" wanted to be given free things like cell phones, groceries (INCLUDING: Domino's Pizza, Subway, Filet Mignon and Veal at the grocery store,, food stamps, housing - you name it!)

 

Just my guess. 

 

EVERYONE THINKS BUSINESS OWNERS ARE RICH... and here's the thing:

 

Even if we are rich - most aren't unless their big risk/gamble has paid odd 10 years from the first day of business.....

 

WE SPENT THE TIME AND INSANE AMOUNTS OF STRESS AND MONEY TO BECOME THAT WAY!!!!! 

 

Just like there are still people that think $1 is too much for a 2-pack of Oeanut Butter Cups, there are people who do not appreciate what us business owners do for them. Without the business owner, we would be in the stone ages. 

 

ANYONE can own their own business if they set their minds to it, yet most prefer not to and simply make us compensate for making the economy go around-and-round. Sad thing is - these people get their way because non-business owners overpower business owners in numbers...

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