Why does Apple not accept my Sales and Use Tax exemption form for my technology company?

Why does apple not accept my Sales and Use Tax exemption form? We are a small business that does security, home automation including home theater, networking, phone systems, etc... Apple forces us to pay them sales tax when we purchase products and then, of course, we have to pay tax again when we sell their product. We are too small to fit into their annual volume purchase category for discounts and I can accept that. But I still do not understand why they will not accept my Sales and Use Tax exemption for my purchases.


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Posted on Jul 25, 2012 8:32 AM

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2 replies

Jul 25, 2012 9:46 AM in response to CSI4U

Unless you're an authorized Apple reseller, you'll be considered the end user and hence in most areas not eligible for exemption from sales taxes as far as Apple is concerned. But you'll have to contact Apple and ask them. We are all just fellow users here and have no way of knowing with certainty why they might have rejected your application for tax exemption.


Regards.

Jul 25, 2012 5:54 PM in response to CSI4U

Apple forces us to pay them sales tax when we purchase products and then, of course, we have to pay tax again when we sell their product.

That, of course, is double taxation and isn't supposed to happen. The way it's supposed to work is you are exempted from being taxed on items which are to be resold. The buyer is then charged the sales tax at the local rate. You then submit the collected tax to the state.


You certainly shouldn't be paying it twice. Talk to the Department of Revenue for your state and explain the situation. They should be able to help you sort it out.


You may have already done this, but check this page for a possible answer. Reading the part on sales tax exemption, it could even be this:

The organization or individual name on the order must exactly match the state tax-exempt certificate.

So if Apple has accepted a certificate (sounds though like they haven't) and you order anything with your company name not spelled exactly the same as what's on the exemption certificate, sales tax will be applied.

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Why does Apple not accept my Sales and Use Tax exemption form for my technology company?

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