flat rate pricing & Sales tax

Techman

On a "Capitol Improvement's"job the sales tax is paid at the supply house 'the tax is paid on my cost of materials ,no tax on mark up or on labor. Service/repair is different.Years back most supply houses did not charge sales tax,if you had a legal tax number and you filled out the proper "resale form".The laws changed as did the "resale form " wording.So now adays most if not all supply houses MUST charge sales tax on all items sold .Then I charge sales tax,on both my markup AND on my labor. That adds up to a tax on a tax. So as a business owner ,I now have to have a seperate file.You SHOULD be deducting the sales tax [on your quaterly Sales Tax Form ],that is paid at the supply house on ALL RESALABLE item.A drum of r410a and a liquid line filter drier is resalable for sure.Purchasing a reclaim drum and a micron instrument is an "office expence" and that sales tax is due and payable. That is in New York 'so check your local rules.

Denny Reardon_3

Flat Rate Pricing & Sales Tax

How do you charge the customer and pay the state sales tax in Massachusetts with flat rate pricing

Darrell

Up here I charge the flat rate and calculate the tax on that rate then add it. So the total billing is flatrate amount plus sales tax.

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Brad White_200

In MA

sales tax is charged on equipment and parts at your sell price. Labor is not taxable.

Yet.

John Mills_4

interesting

So they are happy getting tax only on the wholesale price not the marked up retail price?

Brad White_200

No

The sales tax is based on your sell price to the customer. That way, your mark-up gets taxed along with it. You become an intermediary retail vendor. This presumes that you have a tax-free number so you may not pay sales tax at your wholesaler but the state gets their cut at the final installation.

Your "buy price", with your mark-up, is what is taxed as I understand it.

Believe me, though, here in MA, they are not happy until they have it all...

Maine Ken

T&M sales tax only on materials. Flat rate sales tax on labor too. I would be unhappy as a customer to have to pay sales tax on labor. Here in Maine there have been movements to add a tax on services. It will pass eventually, followed by a tax on breathing!

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