P.T. Premium 5

Posted by GeoFru on November 8, 2006, 3:56 am

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> I know as the customer, I am a stickler for the vendor getting it right

> about what my company should be taxed for ..

but consumables and inventory are fungible. If you take an item out of
inventory for your use, then YOU must report that on the sales tax
form. It IS nice if the vendor can determine by the type of item:
paper towels vs. bacon, if it should be exempt for your restaurant.
(I'm just saying the vendor can't do it all.)

Yes, people like Sysco likely hire the big consulting firms to set it
all up. The typical [customer x item] is confused by this very issue.
As this one item, paper towels, IS exempt if the buyer resells paper
towels. That's why items have classes.

When I do the set up it is usually 20% of what the big firms charge. A
friend in a big firm said their fee was $60 - 100,000, for a mainframe
system (not Ptree). But they were talking multi-state and multi-item.
My smaller clients usually just have to add one state, like MD or NY.
One is cheap, the other takes a few hours if products are already set
up the right way.

If you sell something like software maintenance, then you'll really
have fun, as each state can be different. I think it is MI that
charges 25% of the normal sales tax if software maintenance includes
bug fixes and telephone support. If it's just upgrades and can be
delivered on media, then 100% of the tax rate. CA exempts food, but
charges for carbonated water.

have fun.

George Fruehan
Numbers Talk
510-558-1999

Posted by TKnTexas on November 8, 2006, 1:02 pm

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On this day after the big US elections... let us give thanks for
politicians who know how to take a simple thing and really muck it up
with complexity.
TK