Share
Your employees use credit cards for company material and services purchases. Vendors automatically charge them sales tax and most of the time do not even consider their purchase might be tax exempt for their company. The employees are most likely not experts on what is taxable and what is tax exempt for your particular company. Write down the list of types of things you want them to call the office in order for sales tax exemption certificates can be issued and taxes avoided on tax exempt purchases.
Good advice for credit card purchases:
- When paying an invoice over the phone, ask for the invoice to be sent to you first to review the purchase for taxes. If the invoice includes taxes and your firm is tax exempt, send them a certificate and have the tax removed before you pay.
- For manufacturing firms, any purchases by your employees for your production plants and facilities will most likely be tax exempt, thus they must contact accounting personnel to forward a tax exemption certificate to that vendor.
- Most travel, entertainment, meals, sales costs are normally taxable. Issue a list of the items that are non-taxable for your sales and marketing personnel.
- Tax laws differ in all states so you must look up those applicable tax exempt items for the state where your employees are working.
Log In to continue reading our in-depth analysis of this idea GPI 011 – Hire a sales use t...
