No sales tax on labor in Utah.
Do you charge Sales Tax?
Hello all. Just found out through my accountant that sales tax is supposed to be charged on painting jobs in NYS.
1) Do any of you charge and remit sales tax on jobs?
2) Is this a requirement in most or all states?
3) How do you handle the issues with customers?
Any and all input and help is appreciated. Thanks.
JTP
1) Do any of you charge and remit sales tax on jobs?
2) Is this a requirement in most or all states?
3) How do you handle the issues with customers?
Any and all input and help is appreciated. Thanks.
JTP
21 - 32 of 32 Posts
Remit sales tax on jobs? sales tax is supposed to be charged on painting jobs in NYS...
________________
[URL=http://www.taxmatterssolutions.com/articles/filing-paying-back-taxes.php]Filing back taxes [/URL]
________________
[URL=http://www.taxmatterssolutions.com/articles/filing-paying-back-taxes.php]Filing back taxes [/URL]
dont understand how they can get you again (or the customer) for materials when youre taxed when buying the materials initially.
TJ, and I thought Mass was bad about taxes. Either ND legalizes double taxation, or you may be mis-informed.dont understand how they can get you again (or the customer) for materials when youre taxed when buying the materials initially.
Here in Mass (and most other states that charge sales tax) a business will receive a tax ID # which will permit it to buy materials (for re-selling) without being charged sales tax. The items are then marked up for sale to the public and sales tax is collected by the business from that sale and then given to the state.
I choose NOT to re-sell and my invoices are for the whole job - labor and materials. I do not itemize nor line item materials. If the Commonwealth of Massachusetts wished to pay me a commission for collecting its taxes, I may reconsider, but until that time, I will not be a tax collector.
lol I understand now. Was a bit tired last night reading this thread. Yeah, ND doesn't tax labor. Thanks daArch
I was told the same thing. We now just give one number which includes labor and materials. Amazing the things that can derail a small business sometimes: You're new and you're trying to be honest and break down your estimates so that people can see what is what, and, if you get unlucky, you'll be penalized for it.No sales tax on labor in PA
Be careful on your estimates if you break out material costs. That is taxable. At least I'm told it is by my accountant.
GMack,
First, a caveat: each state is different.
That being said, allow me to indulge in hearsay (another disclaimer !)
"they say" that if you line item material costs EXACTLY WHAT YOU PAID FOR THEM and indicate state sales tax is included, then your butt is covered.
eg
One five gallon bucket of Discount Joe's super
white ceiling paint, incl. 5% MA sales tax ------ $20.95
and obviously you leave the bucket with the inch of dust laden sludge in the bottom.
First, a caveat: each state is different.
That being said, allow me to indulge in hearsay (another disclaimer !)
"they say" that if you line item material costs EXACTLY WHAT YOU PAID FOR THEM and indicate state sales tax is included, then your butt is covered.
eg
One five gallon bucket of Discount Joe's super
white ceiling paint, incl. 5% MA sales tax ------ $20.95
and obviously you leave the bucket with the inch of dust laden sludge in the bottom.
If you company makes over $30,000 a year in Canada, you have to charge GST.
Yup, I collect and pay it.
Yup, I collect and pay it.
Thanks for bring this up, for the first time ever I was late, and you saved me some money.I only owed 33 bucks more.
Hello, I know this is a reply to a very old post, but I was scrolling threw looking for answers and found this, but I have a question. So if you choose NOT so re-sell the "paint" and your tax exempt, and you didnt pay tax on that paint, wouldn't you still owe the state the sales tax on that paint? And you didn't charge the customer for it? Or do you tell the paint store to charge you the tax and then whatever you paid for paint you just charge the customer that total?TJ, and I thought Mass was bad about taxes. Either ND legalizes double taxation, or you may be mis-informed.
Here in Mass (and most other states that charge sales tax) a business will receive a tax ID # which will permit it to buy materials (for re-selling) without being charged sales tax. The items are then marked up for sale to the public and sales tax is collected by the business from that sale and then given to the state.
I choose NOT to re-sell and my invoices are for the whole job - labor and materials. I do not itemize nor line item materials. If the Commonwealth of Massachusetts wished to pay me a commission for collecting its taxes, I may reconsider, but until that time, I will not be a tax collector.
I'm sure there are folks on here who could give you the correct answer. I'm also sure there are folks on here, (like me), who could inadvertenly steer you in the wrong direction when trying to give you good advice. The problem is, you won't know if you got good or bad advice.Hello, I know this is a reply to a very old post, but I was scrolling threw looking for answers and found this, but I have a question. So if you choose NOT so re-sell the "paint" and your tax exempt, and you didnt pay tax on that paint, wouldn't you still owe the state the sales tax on that paint? And you didn't charge the customer for it? Or do you tell the paint store to charge you the tax and then whatever you paid for paint you just charge the customer that total?
For questions on best paint brushes on the planet, bucket grids vs. paint trays, and Graco vs. Titan, we got this. For all things tax related, seek the advice of a CPA or even an accountant. Many offer a free consultation of up to 30 minutes. Even if you had to pay, the amount of money saved vs. spent would make it money well spent IMHO. Good luck.
Actually, we are supposed to be charging HST, at least in Ontario. The supplies are exempt because the tax is paid at point of purchase.In Canada we have GST and PST (General Sales Tax and Provincial Sales Tax). I don't have to charge PST but you would charge GST if you are bringing in at least 35K a year. Its unfortunate that you have to do so, but you pay tax on everything - houses, cars, food, clothing, etc.
"Three things in life are certain: life, death, and taxes."
At least thats how the saying goes...
21 - 32 of 32 Posts
- This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Professional Painting Contractors Forum
A forum community dedicated to professional painters. Come join the discussion about the industry, safety, finishing, tools, machinery, projects, styles, scales, reviews, accessories, classifieds, and more!
Full Forum Listing
Top Contributors this Month
View All
finishesbykevyn
54 Replies
Holland
40 Replies
jennifertemple
38 Replies
Recommended Communities
