Updated: Oct 9, 2024 When purchasing equipment for your business, understanding your sales and use tax responsibilities is crucial. Depending on the jurisdiction, taxes may apply unless specific exemptions are in place. Here's a breakdown of key considerations to keep in mind when dealing with sales and use tax on business equipment.
Key Takeaways:
Generally, equipment used in a business is subject to sales and use tax unless an applicable exemption is available. Businesses should be prepared to pay either sales tax or use tax on the equipment they use.
There are various sales and use tax exemptions for equipment, depending on the taxing jurisdiction. For instance, certain types of equipment used by manufacturers may qualify for an exemption from these taxes.
As always, to fully understand your sales and use tax obligations, it's important to familiarize yourself with the tax laws in the jurisdictions where you operate. Equipment purchases, in particular, are an area that auditors frequently scrutinize
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.
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