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Sales Tax Problem

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safetek

Junior Member
What is the name of your state?What is the name of your state? NC

My company in GA purchased product from a MN company and had it dropped shipped to a job site in NC.

The MN company claims my company in GA must pay the NC sales tax to them because they have a NC license. We have a GA sales tax certificate and the financial transaction was between our two companies in MN and GA not in NC. The product was used by a contractor for the NC customer. It's my contention that the NC sales or use tax is the responsibility of the contractor or the customer , not the MN company.
 


seniorjudge

Senior Member
safetek said:
What is the name of your state?What is the name of your state? NC

My company in GA purchased product from a MN company and had it dropped shipped to a job site in NC.

The MN company claims my company in GA must pay the NC sales tax to them because they have a NC license. We have a GA sales tax certificate and the financial transaction was between our two companies in MN and GA not in NC. The product was used by a contractor for the NC customer. It's my contention that the NC sales or use tax is the responsibility of the contractor or the customer , not the MN company.
It's my contention that the NC sales or use tax is the responsibility of the contractor or the customer , not the MN company.



Upon which statute do you base this contention?
 

LdiJ

Senior Member
safetek said:
What is the name of your state?What is the name of your state? NC

My company in GA purchased product from a MN company and had it dropped shipped to a job site in NC.

The MN company claims my company in GA must pay the NC sales tax to them because they have a NC license. We have a GA sales tax certificate and the financial transaction was between our two companies in MN and GA not in NC. The product was used by a contractor for the NC customer. It's my contention that the NC sales or use tax is the responsibility of the contractor or the customer , not the MN company.

I am confused here. Why is sales tax even involved at all between your company and the MN company? You purchased from a company for resale to a contractor (or to the home owner). It would seem to me that you made a wholesale purchase a then a retail sale and that you should be the one perhaps charging sales tax....not the MN co.
 

abezon

Senior Member
Sales tax is based on place of delivery. If the company has a warehouse in NC, it has to collect NC taxes on all NC deliveries. Pass the tax along to the contractor & declare victory.
 

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