• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

When to charge sales tax?

G

gittyup

Diamond Member
Let's say I own my own small business and I install widgets. Now, as a business I buy widgets tax free? I then sell the widget to someone and install it. So, I charge for the cost of the widget and the cost for installing the widget. Now, Do I charge and collect sales tax on both the widget and installation of said widget? Thank you.
 
The EagleKeeper is correct. Tax laws vary by state - in many labor is nontaxable, in many it is.

 
depends on where you buy the widgets. if you buy them in your own state, you pay tax. if you sell it to someone they pay tax, and if you install it they pay tax on the labor. unless you are doing it mail order and the product will be shipped out of state, then you dont charge them tax (unless you have a bidness in that state).

this varies by state however. there are exclusions like schools and churches which are tax exempt.

edit: btw this is for texas.
 
In PA, you pay tax for something purchased within the state unless you intend to sell it to someone in the state. If you sell it out of state, then you do not collect tax. If you buy from out of state you do not pay tax. When you sell it to someone in the state, they pay tax which you collect and send to the state. There are no taxes collected on services (labor/consulting any non-tangible asset.) Laws vary widely state to state.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top