Do you claim back sales tax paid on purchases
I understand the collecting of Sales tax from Clients and the submission process but am unclear about where you reclaim the sales taxes you have paid on Business purchases. I have worked in Canada and the UK where you reclaim this amount during the filing process. Is this not the same for the US?
I’m not quite sure if I understand your question. However, I will do my best to answer it based on what I think you are asking. 🙂
So you can apply for a sales tax exemption certificate which will allow you to purchase items and not be charged sales tax. I know that you have to apply for this certificate in the state(s where you will be making the purchases. However, I’m not sure if you can a refund for sales tax previously paid for purchases. Avalara, is a company that specializes in sales tax. You should contact them to see if they can assist you.
Link to Avalara: https://fitsmallbusiness.com/goto/avalara/
Best of luck,
Crystalynn Shelton, CPA
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.