Is a fashion design company providing service to customer excluded from sales tax in California?
I have a customer with fashion design company who provides consultancy and some time products such as samples to the clients. The owner pays for some COGS and pays sales tax while purchasing the items. Then the business use those items in preparing cloth sample to the clients but do not charge sales tax. Is this correct? The client are using these samples to produce in mass somewhere else and then sell the items. But I am not sure if these clients are considered as end users or retailers.
in progress 2 Answer