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Sales Tax Group Services:
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Serving Defense Contractors
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California
Defense contractors in California can exempt sales to the U.S. government if the proper FAR clauses are part of the contract and call for the transfer of title to the U.S. government.
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Without specific FAR clauses in the contract, the defense contractor is usually the consumer of all items used to complete the contract. This can include machinery, equipment, supplies, computers and software.
Multistate
Many states treat defense contractors as the consumer of all items used to complete service contracts for the U.S. government. Therefore, the contractor has to accrue/pay sales or use tax on all purchased ex-tax. Special attention needs to be paid to which state the item was used in; i.e. which state's tax applies.
Some great tax planning techniques are available on purchases of software and other machinery and equipment.
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Sales Tax Group Office Location:
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Carlsbad Office
5790 Fleet Street #120
Carlsbad, CA 92008
Phone (760) 931-9900
Fax (760) 931-9913
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| Sales and Use Tax Articles: |
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