Independent automotive dealers have a lot on their plates when it comes to running their business and they may not have time to understand all the finite details that come with their sales tax reporting obligations.  While most dealers certainly understand that their wholesale vehicle sales are exempt sales for resale and that their retail sales are subject to tax, they may not be familiar with a tax credit that is both easy to claim and applies to almost every vehicle dealership, both new and used.  Most dealerships are also familiar with resale certificates that they issue to […]

Automotive repair businesses are frequently targeted for sales and use tax audits by the California Department of Tax and Fee Administration (CDFTA).  The audit of an automotive repair business can present challenges for auditors as they may not be familiar with the business practices of many automotive repair businesses.  This can lead to misunderstandings and a misapplication of common audit procedures that are used to verify that sales tax was correctly reported.  An auditor’s lack of understanding of how an automotive repair business maintains its records and reports its sales tax obligation can often lead to significant frustrations […]