Frequently Asked Questions
Why do I have to pay sales tax?
In consulting with sales tax experts and auditors from various states, it has been determined that our products are taxable with regards to sales tax. However, based on how you conduct your business you may qualify for an exemption on some of the products you purchase from Sunless, Inc.
A common exemption would be a resale exemption. A resale exemption generally applies when you as the purchaser resell the item(s) in the regular course of business to your customers and the following criteria are met:
- You charge your customer separately for that particular item and it typically is not consumed as a cost of your service (i.e. solution as part of a spray tan service);
- You separately collect sales tax on the sale of the product from your customer; and
- You are registered for sales/use tax in the state/jurisdiction the sale took place and you remit the tax collected to your respective state/jurisdiction when filing your sales and use tax return.
If all three of the above criteria are not met, a resale exemption generally does not apply and we are required to collect sales/use tax from you on the sale of those products.