I own a Glass company and hold a resale certificate making my purchases of windshields etc. tax exempt. I recently bought a windshield for my personal vehicle, so bill from vendor let's say was $150 (no tax), I wrote a check to vendor but don't know how to set aside or account for the 5.5% tax so that I can pay use tax at end of quarter. I typically create invoice for customer with windshield and tax etc. then get paid for it and it easily accounts for sales tax but don't know how to handle personal items and personal use tax. Even if I created an invoice for myself, the only actual $ that would come out of my acct would be the $ for the windshield where the 5.5%use tax would be cumulatively paid at end of quarter. Thanks
I presume use tax and sales tax are same rate and that you rarely buy for yourself so I would just invoice myself for the cost of glass plus tax. Now pay yourself with contributed owner equity in addition to the personal check to the windshield company.
Now I have to ask, what insurance on your vehicle do you have that does not cover glass at worst with a $100 deductible and best with free Safelite repair or free glass replace if it cannot be fixed? Most I ever paid was $100 and that was maybe 3 windshields ago. Even Farmers' pays for drone strikes
Thank you for the reply. I'm not sure what exactly you mean by paying myself with contributed owner equity. At the end of the quarter I have to pay in sales tax as well as any personal use tax. Same rates. But I've bought 3 or 4 items for myself so far so I'm looking for a way to track the use tax on items I purchase for myself just like the sales tax is easily accounted for and can be gone back with a date range and find the total owed.
And here in Maine full glass coverage on auto insurance policies is pretty rare. I've been in the industry for 8 years or so and it doesn't happen often that someone has full glass coverage on their vehicle. $250 - $500 deductibles are pretty common and the cost of windshields can range from $250 - $400 sometimes more