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Thread: Sales taxes to be charged to the customer?

  1. #1
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    Sales taxes to be charged to the customer?

    Some dealers in chicago getting audited. as some of you know dealers get the phones from master agents, for example the iphone 6s for$449 subsidy. and its always on $25 or $49 with port ins which that most sales. state of IL wants to charge the dealers sales taxes on the whole $449 not on the $25 they sell it to the customer. because the dealer sell them for $25 plus tax and get the rebate of his loss on selling that phone for $25 from Boost. does that make any sense to you guys?

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    Nothing new. I am in Florida and the sales tax for the full price of the phone has always been collected at purchase (even with the old contracts).

    Yes, the customer is responsible and not the dealer or the carrier. If they are selling the phone for only $25, it is a subsidized discount. The states want every penny they can collect due to a sale. Makes perfect sense to me.
    Don't make me turn this car around.....

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    States have no money and are trying to make up for it any way that they can. That's why Amazon and eBay are suing some states for trying to charge taxes on items that are tax free if they are delivered to a different state. I would say to expect more audits and more potential loopholes to try and get extra money given the financial shape that many areas are in.

    As far as what they determine the tax that they should be collecting is, part of that could be info that Boost gives them. You'd have to talk to a CPA and show them paper work for them to determine if tax laws have changed or if you could be getting audited wrong. If your Boost rep or master agent is helpful, you may explain to them what is happening and see what they have to say. But bottom line is the state will hold the store owner accountable for taxes they see fit. If participating in promotions screw up dealers when it comes to their taxes, it may be time to stop participating in them.

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    Quote Originally Posted by veriztd View Post
    Nothing new. I am in Florida and the sales tax for the full price of the phone has always been collected at purchase (even with the old contracts).

    Yes, the customer is responsible and not the dealer or the carrier. If they are selling the phone for only $25, it is a subsidized discount. The states want every penny they can collect due to a sale. Makes perfect sense to me.

    That is crazy. any promotion on iphones or free phones always say $25 PLUS tax. never heard of something that tell the customer hey pay the taxes on 6 years iPhone 6 that fake price at $449 $45 taxes and the actual phone for $25. noone will buy it. All stores do not charge that. boost has now bogo on stylo 5 $9.99 a phone and it is clearly say $19.99 PLUS tax.

    when i go to any store like maces to buy a suit and it was $1000 and now $200 I pay the taxes on the $200 now the $1000.

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    Quote Originally Posted by J Wireless View Post
    States have no money and are trying to make up for it any way that they can. That's why Amazon and eBay are suing some states for trying to charge taxes on items that are tax free if they are delivered to a different state. I would say to expect more audits and more potential loopholes to try and get extra money given the financial shape that many areas are in.

    As far as what they determine the tax that they should be collecting is, part of that could be info that Boost gives them. You'd have to talk to a CPA and show them paper work for them to determine if tax laws have changed or if you could be getting audited wrong. If your Boost rep or master agent is helpful, you may explain to them what is happening and see what they have to say. But bottom line is the state will hold the store owner accountable for taxes they see fit. If participating in promotions screw up dealers when it comes to their taxes, it may be time to stop participating in them.
    So crazy.

    So boost dealers have to buy the accessories from ondigo, for example a case cost $4 and they sell it for example for $10 they charge the sales taxes on the $10 what the customer actually paid not as the prices came from ondigo.

    boost mark them this way like the 6s for $449 not as the all time going promo $25 with port ot $50 so bad dealers do not buy them and resell them or ship them overseas. that is the whole purpose of the fake high cost price. so bad dealers.

    also if you go to boostmobile.com and you want to buy any phone they charge you sales for the discounted prices not the retail price. for example iphone 6s retail at boostmobile.com $449 you pay the the discounted price $199 sales taxes not on the retail value.

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    master agents sell it to dealers for $449 dealer sells it for $25 then epay send back $425. those money should not be taxable they are to cover the dealers loss for selling it for $25. that are not commissions they are kind of refund when you actually sell the phone for that price.

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    A lot of what they started doing didn't make sense to me. My guess is that they are saying that on paper you made $449 for the phone after you are refunded, so that's how much the state should collect in taxes. Otherwise, the $425 would be tax free income for you. Prepaid got screwed up once companies felt they could make more money making dealers run their stores like they were postpaid stores, selling phones for cheap or for nothing and looking for reasons to not give out refunds to people. Years ago, my old Boost rep told me that the reason they picked a company for their money back refunds was because they had the highest rate of denying people money than any other refund company.

    At this point, my question to you is what will you do going forward? I'm not sure if Metro stores do the same thing, or if you'll be allowed to go with Metro or have to go with Dish once the merger is in place. If you will end up going with Metro and they don't have policies like this that screw you over in the end, it may be time to talk to them about switching over early.

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    thanks all for support and explanations.

    Master agent now saying those are reimbursements. States specially IL try to charge the full price but they are not taxable. you will get shot in chiacgo if you try to charge a customer $50 taxes on $25 port in promo lol . states try to play with the language of the priceing. They are not commissions or rebates

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    I'm glad it is getting straightened out for you. It's sad and shocking what some states will do to get extra money from people. I had a friend who got called by his state and was told he owed them $25,000 in back taxes and penalties for a business that was closed down for months. After they got that straight, they called him a year later over the same nonsense. It just shows how desperate times really are getting.

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