Up Front Price

freemason21

local furniture guy was charging sales tax and then keeping it for himself. got away with it for a few years and it totaled somewhere in the 200k mark.

piercekiltoff

One could argue that goods changed hands and so therefore the tax is collected on the junk that was sold, and the service was incidental to the sale.

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Inner10

Is it not a taxable service? IF it was then I would qualify it as a "dick" move. If it was not then your are correct the junkman would be committing a crime.

Here's what I found from the florida department of revenue's website:

Doesn't go into enough detail to settle the argument though someone in florida give en a ring.

brooklynite

In California almost all goods are taxable (when the reseller has not paid tax on them).

In California in fact some lABOR is also taxable (like the labor/chef who prepares your food at McDonalds) California Labor Sales Tax

Consult your accountant but here is my understanding: So if you build a cabinet in your shop and take it to the job site to install it, the labor for building it is taxable. If you take the cabinet parts to the site and build it on site and install it, the build-labor this time is NOT taxable. The installation labor is not taxable either way.

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Subbill Construction - Los Angeles Home Remodeling and Construction

jmacd

After reading all these post, anyone can see why bureaucracy sucks! No one really knows what the tax law is.

The law has so many layers that it is impossible to really understand. Reminds of the DOT laws, can be interpreted any way you want them to be.

I just charge the tax and pay it, I know for a fact the state won't send it back to me.

Not to be political here but doesn't anyone see the problem with more bigger gov? You think the tax laws are tough now!

CR Building

I give the price that I expect to be paid when the job is complete.
The taxes are between myself and my accountant.

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Destin Handyman

I try not to add any extra charge ever if possible. Like if I have to buy extra materials say up to $15.00 to do the job right on a smaller job, and even more if it is a larger job. I always say people that pull stupid little stunts like, adding tax or adding bogus charges will always pay for it later. Its called karma and I believe in it alot. The reason we have so many scared customers are because of people that try to suck blood from any and every customer, I am just the opposite. So I do not agree with any of that mess. Other industries pull tricks like adding enviromental charges and many other stunts, I've owned other businesses and all of it the cost of doing business. You cant make one customer pay for eveything you have to pay for to run your business, you might get away with for a while but in the long run it will always bite you--guaranteed!!!!

David
Emerald Coast Deluxe Services LLC

72chevy4x4

all you guys whining about sales tax should move to a state w/o it!

various posters have made a point about tax but seems to be referring to something that is not sales tax. after a quick googlel search, the Missouri states "Labor or service charges when separately billed (e.g., stenographic services, Medicare reimbursement, veterinary clinic, reactor services)" will not be charged sales tax. So...would it then be logical if you billed $200 for the total dump job you pay tax on the entire thing, or bill as $180 labor and $20 dump fee, only the $20 would be taxable?

Now on to the state of Washington that says:



Q: Is labor subject to retail sales tax?


A: Yes. Labor is subject to retail sales tax when performing these activities:

• Repairing
• Remodeling
• Building for the end consumer

You also need to remember that retail sales tax should be collected on the entire contract including

• Labor
• Materials
• Fees
• Permits
• Your markup

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I'm fortunate to not deal with the sales tax issue-if I want to buy a $1500 plasma tv saving up 6000 quarters will get me the tv!

Chris G

No, you cannot show PST on the invoice. It must be absorbed in your price as a costs of goods.

See below:

Janice asked:

I am going into the carpentry business. Do I pay PST on the materials I purchase for these jobs? Do I charge the customer PST?

Mr. Manipula answered:

Customers buying real property, land, buildings or constructed fixtures, are exempt from PST. However, as a contractor, you must pay PST on the lumber, hardware, and other materials you will need to finish a contract. PST is collected once, and in this case, it is the contractor who pays the PST, not the customer

In order for your business to recover the money spent on PST for materials, the total price of the job has to include the total amount of PST you have paid built-in to it. PST cannot be listed on the invoice separate item. Doing so would be collecting PST and in this case against the Retail Sales Tax Act.

For example--and ignoring GST for simplicity--if you bought $100 in lumber for a job, you pay an additional percentage of PST (8% in Ontario) for a total of $108. When you are writing up the estimate or invoice for the job, the cost of lumber must be listed as $108 dollars, not $100 plus $8 in PST.

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bwalley

The guy paid a service to havethe junk hauled away, if the guy did in fact sell the junk and materails changed hands and the guy had a sales and use tax permit, he would be the one to collect sales tax, not the junk hauler.

The junk hauler needs a sales and use tax permit in order to collect sales tax on taxable items or services, and he is to turn it in to the state.

Unfortunately many people collect salses tax on items and services and keep the money, yet when they get caught bad things can happen.

Inner10

Chris,

We are in slightly different businesses, much of what I do is retail related. I have a tax #.

See ORSA: