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Submitted 269 days ago...

arika

arika

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Materials used on a job

We buy materials for our repair service. Some items are bought at home depot and we sales tax there. We submitt the receipt with our invoice for labor. No mark up involved.

There are other materials we use that we buy in bulk and buy wholesale. We charge per item. no mark up involved there either. Do we need to charge tax, or not? The only materials we sell are the ones we use and we just have the customer reimburse for them.

 
 
 
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Submitted 269 days ago...

Liveaboard

Liveaboard

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In order to charge a sales tax, I believe that you have to have a tax certificate from the state in which you work. The sales tax that you collect is then paid to the state. If you are not charging a tax on your repairs I would say no, you shouldn't be charging tax on the materials that you use.
You may want to check with the state on charging and collecting sales tax on your business, it may save you alot of greif later on down the road.

 

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Submitted 269 days ago...

arika

arika

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That is what I thought. Thank you very much!! :)

 
 

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