Taxed on Maintenance/click charges


Well-known member

Was just wondering. Should I be taxed on maintenance for my production machine. The click charges are taxed every month.
Being this is for resale shouldn't I not be taxed. Anybody have a answer for me?


Well-known member
Depends on the laws in your State, but, typically, if your vendor is charging you sales tax, and, you are charging your customers sales tax, then, the State is getting paid twice for the same thing. When your contract was first set up, you should have included your sales tax resale exemption certificate. If not, most vendors will charge you sales tax to be on the safe side (administration doesn't know if you are an operation for resale, or, an in-plant). Once your contract is set up and signed, it is very difficult to get it changed.


Well-known member
I chose the machine but was not there for the final signing. I'm questioning my salesperson about that exact thing now. Thanks for the replies.

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