Paying in cash to avoid sales tax on wedding items or vendors?

posted 3 years ago in Money
Post # 2
Member
1202 posts
Bumble bee
  • Wedding: March 2014

If it’s from a well-known boutique, they’ll issue you a receipt and you will definitely receive your purchase.  No worries there! If you don’t like it and want an exchange/refund, they might give you a harder time because you paid in cash.  If you need to contest the purchase with your credit card company, it might be difficult 4 months after the fact so I don’t think that’s an advantage.  

Is it legal? It can be but it probably isn’t.  If you can try on the bolero in the right colour and size but don’t want to buy the sample, I would go for it.  If there’s a high likelihood you’ll need to return it, I’d do credit card.    

Post # 3
Member
2245 posts
Buzzing bee
  • Wedding: September 2014

Jewelieee:  not legal, but common in all sorts of businesses. Anytime, a business is cash only or offers a discount for paying all cash, I assume they are trying to skip declaring the income and being taxed. But, of course they can pass it off as not avoiding credit card fees/hassle. I’m actually surprised that a well established business is being so blatant about it. That’s kind of dumb on their part. 

Post # 4
Hostess
9907 posts
Buzzing Beekeeper
  • Wedding: May 2014

Jewelieee:  I faced this with my BM dresses – I opted to cover the tax for the girls and put it on my credit card instead of risking paying cash.  I was nervous as well.

Post # 5
Member
1266 posts
Bumble bee
  • Wedding: August 2015

It’s not legal, but it’s extremely common, at least in NYC. I know my dad often offers to pay cash in exchange for no sales tax on large-ticket items.  I think he did with the food for my engagement party.  Companies that use credit cards pay a fee to the credit card company and don’t get any money from sales tax, so by getting cash they avoid the CC fee and make more money.<br />

Post # 7
Member
1266 posts
Bumble bee
  • Wedding: August 2015

Jewelieee:  I’m not sure what you mean. Like, do they pay tax to the city/state? I’m not sure.  I think it depends on if they’re being honest about declaring their income. I really doubt they’re going to pay the sales tax.  My comment was mostly meant to convey that it’s unlikely this is a scam, as it’s a very common practice in NYC.<br />

Post # 8
Hostess
15072 posts
Honey Beekeeper
  • Wedding: June 2011

Not legal. Not ethical. I wouldn’t risk something you are ordering to that. Why would they honor a receipt if they’re not going to follow the law? That would be my concern. 

Post # 9
Member
6026 posts
Bee Keeper
  • Wedding: October 2014

It’s not legal at all and if the store goes out of business or gets your item wrong, you’ve got no protection. id pay with card and I’d probably report to the state that they were offering to skim the sales tax for a cash sale.

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