Detailing sales tax

[diyguy]

In Kentucky automotive washing and waxing is exempt from sales tax. But a dealer deducted 6% sales tax from the invoice I sent them for detailing service and paid me 6% less than what they owed me. Are they allowed to do this? Even if detailing service was taxable here it would be my responsibility to pay the tax, not them.

[Flash Gordon]

I would call their accounts recievable dept and ask them to explain the deduction. When I worked for dealerships I always made it a point to introduce myself to the people in this dept on the front end

[FUNX650]

I still say that so-called: $5.64 'deduction'...was for re-stocking that dealership's:

"Being Shotty-to-Folks"...supplies.

(And again...Please excuse any spelling errors, of which I may be guilty.)

Bob

[Jab1719]

My guess is they are going to claim a resale exemption since they will sell the customer the car and claim the cost of your services are include in the price of the car. But they need to provide you with a resale exemption to do this. Being a dealer they have one.

[Jab1719]

Did your invoice have sales tax stated?

[diyguy]

Did your invoice have sales tax stated?

No.

[jwellsii]

You need to call and ask there reasoning for the deduction. If you didn't charge tax they can't deduct it.

[Vegas Transplant]

Let it go hand.
Eventually, you're gonna walk away from the dealership anyhow.

[mwoolfso]

Correct, they cannot deduct it if the invoice clearly showed you were not charging them any sale or use tax.

I would just simply mention it to them in a "matter of fact" voice; no need to make a big deal out of it since the invoice is tangible and unambiguous. It really doesn't matter what their argument is and if you ask for an explanation that just puts the conversation in a direction where they can negotiate.

[Flash Gordon]

Sounds like they are tring to jam you for 6%. Typical dealership mentality...

[Eandras]

In the future add the 6% in that they took out. This way you get what you are suppose to be receiving.

Ed

[DaveT435]

They are screwing you. If you tried to charge them tax then they would give you their tax id number for your resale form and they would not pay the tax...no such thing as deducting tax that you aren't required to charge. That being said they may (I doubt it) not know that there is no tax on washing and waxing cars and assumed you had tax included...did you give them an itemized bill?

[Vegas Transplant]

Here's the thing hand that concerns me the most and led me to my earlier post.

(a)You're in a verbal relationship with one entity of the corporation.

(b)You're dealing with another entity that handles the payouts/book keeping.

(c) Eventually, you'll be receiving a 10-99 or other tax form that the first entity may, or may not have stated truthfully in your private discussions before starting. Usually at the end/beginning of a fiscal quarter.

Am I warm, or way off base?

Either way, if this 6% is getting under your craw, just wait - it always gets better with dealerships.

Keep us informed of your progress. You'll be helping another detailer down the line.

[Bates Detailing]

Garbage! Ive never been paid less than I have invoiced - and if someone chose to do so they would call and explain why IMO.... sounds crappy slezzish to me.

[DaveT435]

Here's the thing hand that concerns me the most and led me to my earlier post.

(a)You're in a verbal relationship with one entity of the corporation.

(b)You're dealing with another entity that handles the payouts/book keeping.

(c) Eventually, you'll be receiving a 10-99 or other tax form that the first entity may, or may not have stated truthfully in your private discussions before starting. Usually at the end/beginning of a fiscal quarter.

Am I warm, or way off base?

Either way, if this 6% is getting under your craw, just wait - it always gets better with dealerships.

Keep us informed of your progress. You'll be helping another detailer down the line.


Oh yeah...I didn't even think about a 10-99. They may get you comin and goin!!