Taxes?

[kingmonkey]

Today I went out and did two repairs for someone who was referred to me by Safelite. Now, I've done a bunch of repairs already and a dozen or so insurance referrals and never really noticed this. Maybe I did but never really thought about it. The paperwork from Safelite says "You must include sales tax on your invoice if applicable." I've never done that on any of my invoices.

Tell me, what exactly do they do when you include the sales tax? Is that money sent to you so you send it to the state or is it deducted from what your being paid or what? I just take the sales tax out of everything I'm paid and set it aside for when I file at the end of the year. Give me the scoop on this boys! I'd like to know!

[Clarity Glass]

charge safelite per the contract agreement plus the applicable state sales tax. The state sends me forms to submit the taxes on a quarterly basis. In Washington you can submit the paperwork online or paper. If you have a local Department of Revenue office they'll give you a quick tutorial filling out the forms. Very simple.

[Ricersux]

Check with your accountant or state dept of revenue. They will have a website I'm sure. In Indiana we don't collect sales tax on labor services only products and goods.

[kingmonkey]

We have to pay sales tax on the labor here in Texas -- at least that's what the Comptroller told me. But like I said I've just paid the sales tax out of my own pocket. Like if I do a repair and I get $60 I'll take $4.95 out of it and the rest is mine. I just put that $4.95 in a checking account and make the payment at the end of the year. BUT! If the insurance companies are the ones paying the sales tax that's going to be like getting a pay raise. I'm still not sure why they need the sales tax info, unless they are the ones who are paying it.

[theglasstech]

I know that in Georgia we do not charge sales tax on labor, only on products sold. With that being said you would have to check your state to see what sales tax laws apply, as they are set forth by the states themselves. I also know that in Georgia (speaking purely on my past in retail sales in Georgia here) you must apply to the state for a sales tax id # or sales tax exempt #. You are required to collect the sales tax, and then send it in every month. I know that your sales tax is due for one month the following 20th of the next month or you will be charged late fees and such. With that all being said I live in Georgia and this is where I am speaking of, but if you speak to a CPA they should be more than happy to advise you of your local states policies.

[Brent Deines]

Be sure you make it very clear that you do not sell parts or use parts of can kind for your service. It's labor only! In many states that is the difference between having to pay sales tax and not, but if you just say your company provides windshield repair services they will often lump you in with glass replacement shops. Sometimes it comes down to who you talk to, so don't give up too easily. Like theglasstech said, talk to a CPA and explain what you do very carefully. Get something in writing citing the law that proves you are exempt and why, then go back to the state with that info. More than once I have talked to two windshield repair technicians working in the same state, one paying sales tax and the other not.

[CV Windshield Repair]

King Monkey

I live in Texas and according to the State Comptroller's office if you are working on a motor vehicle you do not charge tax on your labor.

[Fuzz]

I live in texas and have been doing a my research before entering the business.

According to this link to a page at the Texas Comptrollers Office there is no sales tax on labor for Automobile repairs. I will personally be asking for a written letter from them stating this to be true for the repair of windshields and headlights.Can never be too careful.

http://www.window.state.tx.us/taxinfo/t ... 4_113.html

[Fuzz]

I also just checked a repair invoice from an automotive service center here in Texas and the company only charged tax on the parts. Hope that helps, but i would suggest anyone in Texas NOT take my research as fact and make the appropriate calls to confirm this for yourself.

[kingmonkey]

Man, that's why I hate dealing with the government. I double checked and you guys are right. I don't need to collect a sales tax. Thanks a bunch! You guys have saved me a ton of money!