(Closed) Paying vendors in advance

posted 6 years ago in Money
Post # 16
Member
284 posts
Helper bee

Most of the vendors in Australia anyway have to be paid before the wedding, usually a deposit when you book and the balance about a month or two before the wedding. I had absolutely every vendor show up and do a good job.

In Finland where I attended a wedding, everything is paid after the wedding which I think is just an amazing amount of trust on the vendors part when you think about it.

Post # 17
Member
8602 posts
Bumble Beekeeper
  • Wedding: September 2015

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FantasticFawn:  As long as they’re established vendors with a long history of good reviews it’s nothing to worry about. You don’t want to write checks on your wedding day

Post # 18
Member
236 posts
Helper bee
  • Wedding: August 2016

I do it that way! We have a two year engagement and I wanted till I have the money, Then pay with my VISA and within two weeks I pay it off! If I dont have the money im not putting it on my VISA! Great way to do it!!

Post # 19
Member
6534 posts
Bee Keeper
  • Wedding: October 2014

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tjacob2014:  that’s not how sales tax works though. It’s not the vendor not doing their taxes properly; it’s the vendor not doing YOUR taxes properly. Yes, the state or city can theoretically come after YOU because sales tax is the buyer’s obligation and the state’s revenue. Credit card fees are a different animal all together. But a vendor has no legal right to waive taxes because it’s not their money. Who knows what kinds of shady shit they are pulling but the very best case scenario is that they are discounting their base price, paying your sales tax, and telling you that theres no tax (maybe they think that is easier to understand?) and at the worst, they’re exposing their customer to future tax liability if they (the vendor) are ever audited. 

Well-respected vendors don’t try to evade taxes.

Post # 20
Member
1103 posts
Bumble bee

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Horseradish:  well I’ve looked online and two things: as it turns out, yes vendors do self-report sales tax and submit that in a system just similar to estimated quarterly taxes for federal taxes. 

Heres the big thing: services with no tangible goods are not subject to sales tax. including photography in which all photographs are transferred and distrusted electronically. I have no albums or anything in my package, so no, my vendor is not trying to evade taxes. But I DID save myself $330 by asking. 

Post # 21
Member
444 posts
Helper bee

I have never encountered a vendor that doesn’t require payment in advance, at least not in the UK anyway.

Post # 22
Member
6534 posts
Bee Keeper
  • Wedding: October 2014

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tjacob2014:  but if your photographer dropped the sales tax they were not supposed to be charging in the first place because they’re providing a service, not a tangible good, wouldn’t that  be a red flag to you? Because if you hadn’t asked, they’d have overcharged you. At best, an amateurish mistake, at worst, an attempt to rip you off.

Post # 23
Member
1103 posts
Bumble bee

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Horseradish:  Eh, I don’t think it was intentional. He doesn’t sell many packages with tangible goods, I’m sure he realized afterwards that he could offer it sales tax free and thats why he offered. I don’t think it’s fair to judge a vendor you don’t know and don’t have experience with, especially since you didn’t even really know the complicated rules before an hour ago either.

Anywhos, that’s besides the topic. Like I said, credit cards are a great option if you have a good rewards program, unless cash will get you a better deal. 

Post # 24
Member
189 posts
Blushing bee

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tjacob2014:  Gotta jump in here…What state do you live in? I ask because I’m a wedding photog and so I know for a fact that many states require photographers to collect sales tax even if the package does not include tangible items just because they COULD be purchased down the road. Basically what that means is that services that could lead to tangible sales are still taxable as far as sales tax goes.

It’s definitely sketchy to say “You don’t pay taxes if you pay cash”. You can give people a discount on the overall package, but you technically have to collect sales tax. It’s not really your money, it’s the government’s.

Post # 25
Member
1103 posts
Bumble bee

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sweettea169:  wedding is in NY, and the document I read was specific to NY, saying if there are no tangible goods, no sales tax. The amount charged is already taxed through income tax, which makes sense. They are getting paid for a service which is what a salary is. 

Seems to be in line with the rest of my vendors also. No tax on DJ or DOC, but tax on flowers, etc  

Regardless, if it’s a self-report sales tax system I don’t see the issue. If a vendor charges a certain amount for a package, like my videography for example, without a line item stating how much of it is sales tax, that doesn’t mean there isn’t sales tax being paid. It just means my price is inclusive of that. It’s on my vendor to give the government it’s due. 

Post # 26
Member
36 posts
Newbee
  • Wedding: March 2016

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FantasticFawn:  Don’t they make you pay before the wedding anyway? All my vendors want the final check the week before. 

Post # 28
Member
284 posts
Helper bee

All my vendors were more than happy for us to pay things in full up front and we did for a few items like the photobooth, celebrant and decorations company. I don’t think you will have a problem with vendors not wanting to accept the money and you can lock in the price then as well.

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