View Full Version : Taxes across state lines

Custom Search

01-24-2008, 04:31 PM
I sub contract a company in another state to work on a piece of equipment. The equipment and company is in Georgia and my company is in Mississippi. What is the law in relation to sales tax? If I have a tax exempt number from my state should that be good enough or do I also have to fill out paperwork in Georgia. The company i Georgia wants to charge sales tax to me unless I fill out this Sales and Use tax certificate of exemption from Georgia.

01-25-2008, 12:41 AM
Disclaimer - I do not run a business nor do I claim to know how to.... , but I did stay at a Holiday Inn last night! :D

But no, seriously! Yes, they have a right to charge you sales tax because you are paying a company to provide you a service. Think of it like this.... Say you live here in MS and your parents lived in Atlanta. You decided to hire a carpet cleaning company to go to your parents house and shampoo their carpets. When you receive an invoice of the bill, you will notice that they charged you GA sales tax on the services provided. And you have to pay them.

So no, your MS state tax exemption means nothing over in GA. Remember, we are not talking about Federal Taxes, so it will not carry over across state lines.

I would suggest you check out the tax laws, not only in MS but GA as well.

Mississippi State Tax Commission (http://www.mstc.state.ms.us/)

Georgia Department Of Revenue - Business Taxes (http://www.etax.dor.ga.gov/BusTax_SalesTax.aspx)

Our company has dealt with this in past, but not recently. But we will soon be placing machines all over the state, as well as TN and AL. I might just ask one of my bosses about this tomorrow. Just so I'll know. :cool:

01-25-2008, 02:42 AM
Thanks for you thoughts man. This is how I was leaning but my boss was telling me to argue with them about this so I wanted to do some research before I tried to make a point. I also emailed a tax professional about this and am waiting for an answer. when I get an answer I will share with you in the thread.

01-26-2008, 06:19 PM
My other research online led me to the same conclusion. There are forms (for Georgia anyway) to fill out and submit to the other party. There is a line for a certification # from Georgia but after a little more reading that is not necessary in this type of situation. Any way thanks for your input and maybe this thread will help the next lucky soul with a question like this.

Custom Search