Sales and Use Tax Refund Opportunities Manufacturing Companies
Texas and a majority of states allow a manufacturing company to purchase materials and equipment used in the manufacturing process tax free. Generally, to qualify for the exemption, the materials and equipment must be necessary and essential to the manufacturing process.
As businesses are dealing with the COVID-19 pandemic, cash flow is crucial to manufacturing companies. To enhance cash flow, manufacturing companies should review its sales and use tax procedures to determine if sales and use taxes for certain purchases of materials and equipment were paid in error. If sales and use taxes were paid in error, there may be an opportunity to obtain a cash refund of such taxes.
If you need assistance in managing the business planning process, Freeman Law can help clients navigate business tax laws. We offer value-driven services and provide practical solutions to complex issues. Schedule a consultation or call (214) 984-3410 to discuss your corporate structuring or business and tax planning concerns.