Detailing sales tax

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diyguy

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In Kentucky automotive washing and waxing is exempt from sales tax. But a dealer deducted 6% sales tax from the invoice I sent them for detailing service and paid me 6% less than what they owed me. Are they allowed to do this? Even if detailing service was taxable here it would be my responsibility to pay the tax, not them.
 
I would call their accounts recievable dept and ask them to explain the deduction. When I worked for dealerships I always made it a point to introduce myself to the people in this dept on the front end
 
I still say that so-called: $5.64 'deduction'...was for re-stocking that dealership's:

"Being Shotty-to-Folks"...supplies.

(And again...Please excuse any spelling errors, of which I may be guilty.)

Bob
 
My guess is they are going to claim a resale exemption since they will sell the customer the car and claim the cost of your services are include in the price of the car. But they need to provide you with a resale exemption to do this. Being a dealer they have one.
 
You need to call and ask there reasoning for the deduction. If you didn't charge tax they can't deduct it.
 
Correct, they cannot deduct it if the invoice clearly showed you were not charging them any sale or use tax.

I would just simply mention it to them in a "matter of fact" voice; no need to make a big deal out of it since the invoice is tangible and unambiguous. It really doesn't matter what their argument is and if you ask for an explanation that just puts the conversation in a direction where they can negotiate.
 
Sounds like they are tring to jam you for 6%. Typical dealership mentality...
 
In the future add the 6% in that they took out. This way you get what you are suppose to be receiving.

Ed
 
They are screwing you. If you tried to charge them tax then they would give you their tax id number for your resale form and they would not pay the tax...no such thing as deducting tax that you aren't required to charge. That being said they may (I doubt it) not know that there is no tax on washing and waxing cars and assumed you had tax included...did you give them an itemized bill?
 
Here's the thing hand that concerns me the most and led me to my earlier post.

(a)You're in a verbal relationship with one entity of the corporation.

(b)You're dealing with another entity that handles the payouts/book keeping.

(c) Eventually, you'll be receiving a 10-99 or other tax form that the first entity may, or may not have stated truthfully in your private discussions before starting. Usually at the end/beginning of a fiscal quarter.

Am I warm, or way off base?

Either way, if this 6% is getting under your craw, just wait - it always gets better with dealerships.

Keep us informed of your progress. You'll be helping another detailer down the line.
 
Garbage! Ive never been paid less than I have invoiced - and if someone chose to do so they would call and explain why IMO.... sounds crappy slezzish to me.
 
Vegas Transplant said:
Here's the thing hand that concerns me the most and led me to my earlier post.

(a)You're in a verbal relationship with one entity of the corporation.

(b)You're dealing with another entity that handles the payouts/book keeping.

(c) Eventually, you'll be receiving a 10-99 or other tax form that the first entity may, or may not have stated truthfully in your private discussions before starting. Usually at the end/beginning of a fiscal quarter.

Am I warm, or way off base?

Either way, if this 6% is getting under your craw, just wait - it always gets better with dealerships.

Keep us informed of your progress. You'll be helping another detailer down the line.
Click to expand...


Oh yeah...I didn't even think about a 10-99. They may get you comin and goin!!
 
Are you a legit business?!?!? Any B2B transaction will incur a 1099 - thats given...... but to get 6% taken off what you charged is garbage - you charge what you charge, they have no right to take off anything unless you approved it from the getgo.
 
Not any b2b transaction will incur a 1099. corporations do not receive 1099s. Also they can only 1099 you for what they paid not what you billed. But I agree if you didn't charge sales tax I can't see how they deducted this. Seems complete inappropriate to short pay an invoice without an explanation.
 
Maybe the laws are weird in Kentucky, but here in NJ, you would be responsible for paying the sales tax to the state, as the provider of the service, so what is the dealer going to do, pay the tax to the state in your name?

This sounds like the usual dealer BS scam, they run it on the customers, why not the vendors? I remember my friend took her car to the dealer for a wiring harness troubleshoot, and they charged her $100 and then tried to surcharge her $3 or $5 for hazardous waste disposal...for electrical troubleshooting? She made them take it off.

Anyway, as others have said, I'm sure they're not on the level with this...maybe they could use an audit from the state sales tax people? I don't know about KY, but they are brutal here in NJ.
 
DaveT435 said:
Oh yeah...I didn't even think about a 10-99. They may get you comin and goin!!
Click to expand...

You know DaveT, the only reason I posted on this thread was because of past experience...and I also followed the thread that the author posted before this thread was started.
I do in fact wish my statements to be erroneous, but to reality I must defer.
 
Not to get off topic but they can pay the sales tax to the state themselves. When the vendor charges tax it's sales tax when they don't the customer is required to pay use tax to the state. The catch is the vendor proving the customer paid the tax to the state otherwise the vendor would have to pay as well. Gotta love the gov't(and hope you don't get audited) and another reason to keep your customers happy.
 
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