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Sales Tax on Van's purchases in Georgia
I just received a small order from Van's. For the first time ever, I was charged sales tax. I suspect I know the reason, but does anybody know for sure?
If this is the future, it will add thousands of dollars to the cost of an airplane kit for Georgia purchasers. |
Van's posted a notice a few weeks back that they are now required to collect sales tax on all items shipped to GA now.
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Krea,
They used to hit you with <effectively> the same bill when you registered the airplane. Apparently, they will collect it as a sales tax going forward. The primary difference is the timing of when you pay the tax. |
I suspect the now have "nexus" (significant physical presence) in Georgia as they list an east cost rep in Georgia on their web page, In my experience, one you have nexus in a state you are obliged to collect sales tax.
Same goes with Aircraft Spruce, if you live in Georgia they will add sales tax, due to their presence in Georgia. |
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Kyle, are you saying that there will be a one for one reduction in tax liability upon registration provided you can properly account for Georgia sales tax paid? If so, do you have a Dept. of Revenue reference I can go review so I can make sure I meet their requirements? Thanks much. |
Make sure you keep detailed records of purchases including what you paid taxes on. The State will require that you have proof of taxes paid otherwise they will hit you again when it comes time to register the plane. "Claim what you have to and deduct whatever you can". (Legally)
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http://www.vansaircraft.com/public/news.htm |
Thanks for the link and the information. Guess I need to visit the news and releases page more often.
As long as we are only taxed once, there probably is some benefit to spreading the payments out over the course of the build. |
Van's has a physical presence in Georgia now in the form of Vic Syracuse. (East Coast Representative for Van's Aircraft).
I suspect that is the reason. |
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