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Tax Exempt Gum and Candy Purchases


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I have noticed many of you guys staing your cost of goods including shipping and tax. If you have a business and tax number you can become tax exempt if you are buying the items for resale. I did this with both Sam's Club and Quill just recently. Just call them and tell them you want to buy tax exempt as it is for resale and they will tell you what you need to provide them with to get that status as a buyer. ;D

This should be possible with anyone you are buying from. Some just make you jump through a few more hoops than others.

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I have noticed many of you guys staing your cost of goods including shipping and tax. If you have a business and tax number you can become tax exempt if you are buying the items for resale. I did this with both Sam's Club and Quill just recently. Just call them and tell them you want to buy tax exempt as it is for resale and they will tell you what you need to provide them with to get that status as a buyer. ;D

This should be possible with anyone you are buying from. Some just make you jump through a few more hoops than others.

You pay taxes one way or another. How does it go when you do your taxes at the end of the year?

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I agree with Darryl. If you buy tax exempt now, you'll just have to pay the tax on your return later. The only benefit is that you'll have a few extra dollars of cash flowing through out the year but the hassle just isn't worth it.

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I agree with Darryl. If you buy tax exempt now, you'll just have to pay the tax on your return later. The only benefit is that you'll have a few extra dollars of cash flowing through out the year but the hassle just isn't worth it.

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Not sure how it works in each state but in WI I have to pay sales tax on each item sold in the machines, so at the end of the year they will get their 5.5% of my sales. If I paid tax on my gum and other vendables when I bought them I would be paying the tax twice. Just because you pay tax when you buy them does not mean you do not have to when you sell it. That may not be the same in all states, but I would guess they would want the tax money based on sales and not on your purchase price as there is a big difference in the two.

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We used to have another vendor here from wisconsin and I believe he noted the same thing.

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We used to have another vendor here from wisconsin and I believe he noted the same thing.

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I called the state and asked when we started the business and sales tax is to be collected on all vending machine sales even 25 cent gumballs. I have a sticker stating that sales tax is included in the cost on all machines. This way I can save a little on sales tax as I can state the price of the candy at .2375 and the rest is tax.

The state laws and sales tax are a pain but this and the insurance issue are the two reasons I can get locations. When I bring up sales tax liabilty and product liabilty, I seem to get the owners attention and cheaper commissions easier. The fact that most of the owners never get the promised commissions from their current venders is right up there too.

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In Cali, you have to collect tax on anything you sell...whether or not you paid tax on purchase. There is no reason to pay twice. I have to remind them a few times, but I don't pay taxes upfront since I'm not that happy about double taxation with dumb representation that we seem to have.

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Although I'm going to be paying the sales tax one way or the other, I'm using the sales tax exemption on purchasing candy to keep my costs lower since I'm just starting; and hoping that I'll have enough profit by the end of the year that paying the sales tax then won't be as big of a burden.

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Although I'm going to be paying the sales tax one way or the other, I'm using the sales tax exemption on purchasing candy to keep my costs lower since I'm just starting; and hoping that I'll have enough profit by the end of the year that paying the sales tax then won't be as big of a burden.

If you pay the tax upfront then you still have to pay the tax by business year end. At least in California.

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