i had one built and the guy wants sales tax, is this normal????

No,never had to in the past

I think so if he's a professional. His pricing then usually is set a little cheaper compared to "amateur" builders since he probably gets paid sales taxes refunded over legal imports as bellows and reeds coming from Europe and woods from a local shop. Thus not if parts are coming from a non sales taxes registered middleman.

To pay sales tax or VAT etc AND import duties is standard in Europe, when you import stuff from outside the European EEC. That is thus with USA built accordions, cars, you name it. 19% in Holland, even more in other countries ... If you're a professional musician or repairer/shopkeeper you can apply for a business registration number and get paid VAT taxes only refunded over the PA stuff, bandvans, tools, materials, but you'll have to charge VAT taxes to customers. Thus if you buy stuff here your ordered in the USA, and priced over i think around 150 euro's, you'll be charged 19% plus 4 to 12 % import duties by the local customs above airfreight etc. - Life sucks, s*** happens, and then it hits the fan too. - Nout

depends


just because the seller may have to pay sales tax, doesn;t mean it has to be tacked on as another line item in the cost to the buyer


sent out of state, usually not

big time guys like junior martin may be paying sales tax, but not necessarily itemizing it out as a separate cost

[[if you bought it in LA]]

so sometimes you may be paying it without realizing it

the 'little guys' are probably not paying it to the state, too small to be tracked

of course it may be tacky to ask your builder why he is charging it... go ahead if you think it;s appropriate

maybe he is making a mistake if he is selling out of state, to be collecting it




wle

What Larry said, if you go to the guys shop and buy it, technically he's supposed to charge sales tax (at least in Texas, and I assume the same in La.), but may be be built into some builder's prices. I always understood it that if you sell to someone out of state, you don't have to charge tax, but I just had someone scare me a little about that a couple weeks ago, so I will be checking into it soon. Back when I had a landscaping business, I was always told you didn't want to mess with the state sales tax office. The IRS will slap your wrist, but the state comptroller will shut you down.

I really think that with big shots like Walmart whining about online companies like Amazon hurting them because of people buying from Amazon to avoid sales tax, that before long everything will be sales taxed. Pretty ironic Walmart whining about Amazon and Walmart put so many mom and pop stores out of business.

Alas Bryan, i must quote my poor self ... And wish you best of luck in these matters, but you're right. Don't mess with IRS, and here they dare call themselves services too, "Belasting Dienst" = translated Taxes Services, my foot. One thing i learned is that it's essential to hire a professional to do your bookkeeping if you run an even small-time business because Rules and Regulations change so fast you can never keep up with it, and actually it can save you quite a bit of money to boot. - N

Chrispy why do you keep buying accordions you never hang on to them. You are like a middleman buy sell. Maybe if you learned to play one you may appreciate the instrument. To answer your question yes it is if your buying your accordion from one of the top builders who have a name and earn their living by what they are building and selling.

In my case as a builder as of this year yes. I have established a business through the state and have received an LA state tax I'd number. Anything in state would be charged, anything out would not. Now there are some whom collect cash from time to time and may forego the aforementioned...

thanks guys,.. sales tax or not i'm just happy too have it done,[after a 2 year waiting list}.and no its not the big 3, i need something with the sound i remember growing up with, and the big 4 just didnt cut it for me, it was made and sold here in la, Randy,about me learning to play,lets see if u under stand this old cajun saying, The blood is in the meat,

Chrispy is that like the old saying the proof is in the Puddin???

nope!! its kind of like,buying a horse, and racing is allready in his blood

After reading all the responses, I'll "echo" Rusty's response. I would add, it has nothing to do with how big or small the business is, or whether or not it's what you do "for a living". If you provide a service for profit, the IRS requires you to claim the "income", and the state requires you collect sales tax from services in that state. I would clarify one point, if you live in one state and travel to another state to purchase, you are required to pay sales tax. The only way to beet the tax, is to SHIP across state lines! If I ship an accordion outside of Texas, there is no sales tax. If someone comes from outside of Texas to pick up their instrument, I am required to collect sales tax. Clear as mud???
To Chrispy Cajun: you may well have payed the tax in the past, it was just figured in to the price that you were quoted.

Thanks, Jude, I meant to clear that up on the the out of state person buying in person, when I reread it I saw the potential for misinterpretation.

It's the new 9-9-9 plan!

Also, who are the big 3 u mentioned Chrispy?

Actually, services are not usually subject to sales tax. Doctors, lawyers, accountants, none of those people are required to charge sales tax for their services.

Sales of products are subject to sales tax.

If you have ever had any repair work done (on a car, an instrument, etc.), look at the invoice. Sales tax is charged on the parts, but not on the labor.

When someone builds and sells an accordion, at least from a tax standpoint, he is not providing a service, he is selling a product, therefore the sales tax.