Monday, March 23, 2015

Should a non profit charge sales tax it sells in a church?

Should a non profit charge sales tax it sells in a church?
It depends what you really mean. It all boils down to whom is doing the BUYING.

If it is the church BUYING, then they are not charged tax because they are a non-profit organization.

If someone else is buying who is not a non-profit organization (a for-profit organization or an individual) than they have to pay sales tax.

It does not matter that the church is doing the selling (or that you are doing the selling on church grounds) what matters is whether the person or organization buying the goods is tax exempt (non-profit) or not.


Note that the church or any other retailer or seller needs to charge tax on behaf of the state and they are required to give the tax money to the state.

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