[Paint]

Do I need to be adding sales tax to my estimates?

 

[Teetorbilt]

Definitely maybe. I spent 4 hrs. going around and around with the tax folks on this subject and it appears to be a gray area. Basically it goes like this; If the material is incorporated into the house so as to become a permanent part of the structure it is a 'capital improvement' and not taxable. This would include studs, drywall, trim,etc. and I would think paint. Taxable are items easily removed or replaced such as lighting, ceiling fans, et al. Really grey areas are items such as doors, shelving and cabintry. These are generally accepted as being part of the structure and are yet easily removed or replaced.
Then you run into our goofy no tax on services laws in which there is no tax on services unless you incorporate materials in which case everything (the bottom line) is taxable. If your estimates are T&M you could create a red flag here.
After frustrating both myself and the tax agent it was agreed that 99% of work done to a home is non-taxable.
I would visit your local tax office and make sure that they agree too, get the persons card just in case someone comes after you later.
Now wasn't that about as clear as mud? Have fun at the tax office and let me know what they say.

 

[PipeGuy]

Do I need to be adding sales tax to my estimates?

If you are paying sales tax it should be accounted for as a cost in your estimate. Do you mean "should I be collectiing sales tax?"? That's a question for your accountant. In my state, sales tax does not need to be collected on the value of (sub)contract services.

 

[Teetorbilt]

Don't fall into this pit! I did once because in my mind I saw it as dual taxation and deducted the tax paid at the point of purchase. The State of Florida doesn't view it that way and as much as I argued guess who wins in the end? I ended up paying the tax that I hadn't collected.
As Pipe said, you don't collect taxes as a sub, the GC handles the final billing and tax collection.

 

[DecksEtc]

Taxes, try running things and paying the taxes I have up here - 8% provincial tax plus another 7% goods & services tax. Can you say "bend over, grab your ankles and take it like a man!"