Are individual people tax exempt?

No. Individuals are not tax-exempt in the U.S. In some countries, but not the U.S., persons traveling outside of their home country are tax-exempt.

In the U.S., the federal government, most religious organizations (churches, temples, etc.), and 501(c)(3) non-profit organizations are tax-exempt. No individuals are. And yes, anyone who is making a purchase for a tax-exempt entity, with the sole exception of the federal government itself, should have a document from the state or federal government stating that they are tax-exempt.

In general, a Tax Exemption is offered to an individual or organization that the government desires to promote economically. This is because Tax Exemption induces reduction of the tax burden on a specific section of the society to achieve some level of equilibrium among all. To encourage some economic activities through the process of reduction of the tax burden on some organizations or individuals involved in that activity is also another cause for Tax Exemptions. Tax Exemptions are present all over the world. For instance, there are the exemptions from the property tax, and also many others like exemptions on income tax that includes exemptions for dependents or children financially dependent on the individual paying the tax.

Source(s): http://www.planningyourtax.com/

It is next to impossible for an individual to be sales tax exempt. They must be able to show you proof and the store must retain a copy of that proof.

Someone from Canada would pay taxes just like anyone else.

When I was in retail, I used to have issues with teachers. In Minnesota, while schools are tax-exempt; teachers are not unless the purchase is being made by a check or purchase order from the school. Teachers would claim that the purchase on their credit card was for the school so it should be exempt. I had to explain that it didn’t work that way. One guy even said: “My wife is a teacher, do I have to pay tax?”

Talk to management and ask the customers for proof. If they walk out, so be it. Good riddance.

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RE:

Are individual people tax exempt?

I work in retail and lately a lot of people have been coming in and saying that they are tax exempt. One woman told me that she was from Canada so she was tax exempt, which sounded ridiculous to me. So I'm just wondering Why would someone be tax exempt like what qualifies them to be? And no one…

Source(s): individual people tax exempt: https://shortly.im/w70pH

Unless the person can produce paperwork that they are tax exempt, you need to charge them sales tax. Otherwise your employer has to pay it. Being from Canada does NOT make someone tax exempt in the US. Someone buying items for a non-profit might have a form from your state showing they are tax exempt.

Talk to your supervisor about this – there obviously is some additional training needed for you and your coworkers on this.

For example, I work with a public library and have a tax exempt form for library purchases. If I go to Staples, Barnes and Noble, or K-Mart or anywhere else and purchase items for the library, I show the tax exempt form and don’t pay tax. If I purchase the identical item to use at home for my own use, I pay tax. If someone is caught using the tax exempt form for personal use, the sales tax exemption would be revoked for the library.

A reseller is tax exempt on goods bought for resale. Your employer is tax exempt of goods that go on the shelf because it is not the end user. The same employer is not tax exempt on supplies used in the office because it is the end user of them. There shouldn’t be people buying stuff for resale from you unless you are selling at a loss.

You are just the clerk. If someone wants to be treated as tax exempt, let your boss tell you what to do.

TAlk to your employer.

You should be charging EVERYONE sales tax unless they have a tax letter.

You take NO ONE’s word for anything.

Purchases for a charity or church may be tax exempt, with a tax letter and when purchased for charitable purposes.

Individuals are NOT tax exempt, even when from Canada. Call your supervisor.

Source(s): Your employer and you can be fined for not collecting tax and not having tax ID #s when tax is NOT collected. YOU are breaking the law–don’t do it.

I believe you are talking about sales tax which is regulated by each state. To be specific one would need to know what state these sales are taking place in. Generally only those with a resale permit are exempt from sales tax. In most states a copy of that permit must be on file with the store. It sounds like a good number of people have found a way to avoid paying the sales tax which your owner must pay for them if you don’t collect it at the point of sale. You really need to discuss this with your manager.

If a customer claims to be tax-exempt but fails to produce a tax exemption letter or certificate from YOUR state, you are bound by law to collect the tax.

Your employer should have provided training aids with samples of exempt certifications and reseller certifications. If they have not, ask for them.

The Canadian who claimed to be exempt is so FOS that it’s probably leaking out of her hears. Ditto for anyone else who claims to be exempt but does not have state-issued proof of their claim. Charge the tax and refer them to management if they have a complaint.

depends on the state you are in but anyone claiming to be sales tax exempt must present proof of their status

I had a client who had a customer who claimed to be an artist who allegedly was tax exempt and my client gave in to her only to prevent a tirade in her shop

in Calif. there is a tax exempt form that has to be presented to every business subject to sales tax to claim the exempt status

just being a Canadian does not exempt them from sales tax in the US, we pay when we go there