Sales Tax on Repairs

I am wondering if it is unique for me to have to charge sales tax on the entire cost of every repair I do, I live in Utah and they charge tax on labor here.. Is that rare?

Thanks for the input in advance

Jared

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I have had the same question. In Washington, there is an 8.5% sales tax on parts and labor. Can I add this charge to my network billing set rates! I have asked this question to the network reps when I call in a job. But, they don't know either.

Chris

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Yeah I used to do this in WA Spokane area and we charged tax there, but I am hearing that most states don't charge tax on labor, Just curious I guess, if there is no tax on labor in your state (anybody) then what if anything do you send to the state?

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In NY there is tax on Labor..But if you are doing a commercial establishment ie: Bus Co.,Car Dealer,Rental Car Business etc...they have a Tax resale so you don't charge them tax..but would need a copy of the resale number etc.

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Here in the Commonwealth of Virginia, there is no sales tax on labor. The only requirement to collect 4.5% sales tax is on any merchandise you sell.

As for the networks, add the sales tax to your invoices. The worst thing that can happen is that they won't pay the additional fee - just one more reason to tell all networks no thanks!

Mike Burstein
Dominion Windshield Repair Inc
www.ChipDr.com

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No tax on labor in Cal. Check with your accountant on all taxes in your area. As the tax man is the person you want on your side, not on your back.

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Hello All,

Tax Aspects of Sole Proprietorships

A sole proprietorship can be defined as any unincorporated business with a single owner. It's the most commonly used form for new small businesses. If your business has only one owner, the IRS will presume that it's a sole proprietorship unless you incorporate under state law.

From the IRS's perspective, the business not a taxable entity. Instead, all of the business's assets and liabilities are treated as belonging directly to the business owner. When tax time rolls around, all income and expenses generated by the business are reflected on either Schedule C, Profit or Loss from Business, or Schedule C-EZ, Net Profit from Business. Whichever of these forms you use, it must be included as part of your annual individual tax return (Form 1040).

I would CYA in your state though... I am not sure about the other types of company setups.





Pay it foward,

Brian
info@safeglasstechnologies.com
www.safeglasstechnologies.com</p>

New Mexico makes it simple. Everthing is taxed here. Food, medicine, clothes, doctor visits, hospitalization, services....EVERYTHING! I suspect even the air we breathe might also be taxed.
There has been talk about eliminating the tax on prescription drugs, but maybe that was just for senior citizens, because we still paid tax on the most recent prescription about 2 weeks ago.
In any case, windshield repair is a taxable service here, except in the case of clients with tax exempt status: churches, car dealerships (because of re-sale, it is considered a cost passed on to the purchaser, etc.
There is also no difference whether it is a corporation, sole proprietorship or partnership, every business here is required to collect the appropriate amount of tax according to the area in which they are doing business. ... That's another thing here... the state sets their tax rate, each county tacks on what they consider their fair share, then the incorporated areas add the percentage that they want to get. Tax in NM can be as low as 5.5% or a high as 7+%, according to the county and city. If you think you are confused by this, try doing business in several incorporated areas, in several different counties, when you are supposed to charge tax according to the ground you are standing on at the time! YIKES! It can really bog you down if you dont stay on top of it.

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In Louisiana there is sales tax on everything. When you sign up with sgn &amp; lynx, one of the questions on their form asks if you are required to collect sales tax. If you say 'yes', they ask that you send in your state and local tax id forms. Then you can add tax to your invoice.

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no tax in arizona ( can't tax labor )
it's considered a service and in doing so were giving the resin away as part of our service.

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