Find solution
How much does a cable/satellite provider have to pay?

Should a service provider pay sales taxes if a user was not able to be charged for them?

  • I am talking about services which are billed by a prepaid billing system. The system charges customer tax once a month, however services are charged as they are used. E.g. the user paid $100 for the service, but there was no money to pay $20 sales tax in the end of month. The reason for charging money for the tax seperately from the service charge is due to the fact that http://www.nyc.gov/html/dof/html/business/nys_sales_tax.shtml. Therefore, the billing system aggregates charges monthly. Finally, if a service provider needs to pay the tax either way, even if no money was charged from the customer, then how would you suggest to design a tax compliant prepaid billing system? When should the tax charges be made?

  • Answer:

    If you are required by law to remit sales tax to the state, it doesn't matter if you were "unable" to charge that tax to the customer, you still owe it to the state.This answer is not a substitute for professional legal advice....

Cliff Gilley at Quora Visit the source

Was this solution helpful to you?

Other answers

If you owe sales tax, you are legally obligated to pay it. Your administrative difficulties are not the state's sales tax board's concern and they have zero interest in hearing about your collection difficulties.

Garrick Saito

A billing must be issued including the applicable the sales tax once the goods or services have been delivered even the customer may not pay. If at the end customer does not pay or only pays a portion of the total sales including sales tax, normally you can apply for concession to get your tax return adjusted but the customer must be billed first. Sales tax could also be collected in front for some supplies with upfront non-refundable payments. Sales tax for prepaid mobile cards are also collected in front, and the top amount too, instead of when or after the customer makes a call. This could also be applied to delivery of other services as long as the upfront payment is not-refundable but of course that depends on the applicable law in your jurisdiction.

Noorca Armadi

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.