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Sales Tax

QIt is my understanding full barter transaction are sales tax exempt, is that correct and what do I do if I'm requested to pay such tax?

   ANo Taxable item is Tax exempt weather it is paid for with barter or cash.
If you purchase something in the same state you are in and it is a taxable item, sales tax is collected at the time of the sale. If the purchase is made from an out of state vendor, most states do not require you to collect taxes, though some states such as California do require it. And some items if being dropped ship have distribution from your state also require the taxes be paid at time of purchase. Some items such as Tobacco the taxes have to be charged and paid to the state the item is sold from regardless of where the final sale is from. So weather it is charged or not at the time of purchase is dependent on the state, conditions, and weather the vendor is required to collect taxes on out of state sales. If not paid at the time the item is bought, by law when you fill out your state tax returns, you’re supposed to write how much you’ve bought without paying for a “use tax” and pay the taxes at that time.

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BDR Barter Exchange
973 Stockdale Circle Big Sandy, TN 38221
Phone 931-227-4357
Authorizations ONLY 866-334-1265
Software HELP Bobbi Vickers 931-227-HELP (4357)
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