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