Just got to auditing my lab prices and i noticed in prior to 2015 i was getting sales tax added to my lab bill....after 2015 no taxes, was i being charged taxes erroneously for taxes? in 2015 the lab stopped adding taxes but then my lens costs went up by the taxation amount.
"Feeding the beast, hoping it will eat you last" -- Winston Churchill
Interesting...our prices from our Labs do not have taxes on them. I assume it is included in lens pricing.
Cleary a case where you should contact your local State taxing authority and get the straight skinny. A lot of wholesale businesses play footsy with taxes and you don't want too come out holding the unclean end of the turd.
Did the math in the last decade I have paid them just shy of 250k in "taxes" at 8.25%Originally Posted by rbaker
This is a big 3 lab as well....
"Feeding the beast, hoping it will eat you last" -- Winston Churchill
I'd check with your state's board of taxation for the sales & use tax and see if lenses were at one point taxable, here in PA they are not (like most medical products).
I checked Texas' website and under RULE §3.284 (d) (1) it says: Sales or use tax is not due on the sale, lease, or rental of medical equipment meeting the definition of a brace, corrective lens, hearing aid, orthopedic appliance, prosthetic device, or dental device. Sales tax is not due on replacement parts designed specifically for such devices and appliances. With the exception of corrective lenses, a prescription is not required. (emphasis added)
Right and we never had charged sales tax on lenses in Texas there for I was charged tax when I shouldn't have been. In 2015 this stopped, but prices of there lenses also went up by nearly 10%. My estimation is that the realized they were charging taxes to people and didnt not require collection of taxes and did not pay them themselves therefor was used as profit. When they realized the mistake and removed line item from lab invoices the had to increases product pricing to continue same profit margins.
"Feeding the beast, hoping it will eat you last" -- Winston Churchill
We maintain NTTC or Non Taxable Transaction Certificates for all of our accounts. Likewise we had same forms on file with our lens vendors since they are out of state and purchases would be subject to tax. Tax should not be billed by the lab since lenses and frames are retailed and taxes collected from the consumer by the end user. You should have a CRS number and fill appropriate forms with your lab. Worth a call to the lab as to why the change in tax charges
8.5% Not a bad haul.
I have had labs charge us and we got it fixed so I am guessing they owe you alot of money?
I work for a %.
Are you sure that they are not charging you tax on your EOM statement?
If a state does tax Eyewear, it is paid by the consumer purchasing it. If they don't charge tax on Eyewear, no one in the production of them pays tax on materials to produce. You need to file a tax resale certificate with your vendors, to make your tax free for purchases, frames and lenses, even sundry items, even if there is a sales tax on that item has tax at the end, you collect and pay. A quarter of a mil, and no one notices, very sad. Good luck getting that back from a big 3, hope your pockets are deep.
Your signature appears wrong, they ate you first.
That may be the case in your state, but not mine.
Can you clarify this CME? If any state decided to start a VAT, it'd be California...but I wasn't aware they ever actually did. How exactly are you charged taxes on anything of which you're not the end-user?
Since Reagan was governor, optical products have been considered medical and the end user is not responsible. We pay taxes at wholesale.
...which forces you to mark-up your own prices, and so the patient pays for it anyway. Something about this I'm just not getting...but thanks for sharing.
Not sure why you pay tax to produce a " tax free" medical device, but you are in California, that says it all.
I don't make the laws
which side of the turd is the clean one?
Every state is different on taxes. Some states charge consumers tax on medical devices (contacts, glasses, etc...) and some only charge tax on plano sunglasses. I'm sure there are other forms of taxation in the optical biz as well. I would assume if your lab is charging you tax, that you could find a lab in a state that does not charge you tax.
Neither. But you keep picking the darn things up, hoping against hope, that it will be different this time.
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