This is question for company owners , In Excavating how do you charge your customers taxes, do add it on the end of the bill , sounds stupid I know But need the help, Thanks KMS
when we buy material we always pay the tax inless it's a tax exempt job. and just charge the custmor for the material and mark material up when you can. Alot less paper work. You don't need to charge tax when you are working with your equipment because it's a service. Hope that help:usas
You're completely wrong---any service is taxable---it's only not if the service you are doing meets ALL the criteria on the Capital Improvement form or some other tax-exempt form because basically you are doing new construction of some sort.Try telling a sales tax agent in Albany that services aren't taxable---he will ask for directions to your office faster than you can say Oh S***!!!
Sorry i guess i should have said that a little different you are absolutely right you do need to have a capital improvement form in order not to charge sale tax. Which like you said most off the time you are doing new consruction i should not have said service.ointhead
You're completely wrong---any service is taxable---it's only not if the service you are doing meets ALL the criteria on the Capital Improvement form or some other tax-exempt form because basically you are doing new construction of some sort.Try telling a sales tax agent in Albany that services aren't taxable---he will ask for directions to your office faster than you can say Oh S***!!!
This is question for company owners , In Excavating how do you charge your customers taxes, do add it on the end of the bill , sounds stupid I know But need the help, Thanks KMS
I think I understand your question, as a owner, if I showed I added taxes, on work performed and tax on supplies, I would lose about half of my customers. They dont like to pay tax on anything (who does) so I just show everthing as a total
excavator work-$2800.00
dozer work- $1200.00
supplies- $856.97
I'm not saying, dint charge taxes, just don't show it. In my state you don't have to charge taxes on machine work.
Just my 2 cents worth
One thing everyone needs to do here is get their terminology correct. You, the contractor do not charge sales tax, the State does. You are simply acting as a collections agent for the State as required by law. State laws vary, so not all answers seen here will apply to everyone.
cat320, in NY the answer to your question if I'm understanding it is yes, you must collect tax on labor unless the job is a capital improvement.
I agree with Steve on thid one because I have lived in a few different states. What works in one state will not work in another. Here where I live certain items are taxable while others are not.
As painful or boring as it might be it would definately be worth the time to sit down a learn the basics. It will possibily save you down the road from a mess!:Banghead
So new home construction is not taxable and and existing homeowner work is taxable, what do you charge tax on the final cost of job So a Builder calls me and says I need a cellar dug for a new home I know i don't charge tax on that project just pay IRS on profit , A Home owner calls says they need a waterline installed or septic system I quote them a price and Then add Tax On it Does that sounds Right
So again,basically a repair is taxable,but new construction is not,BUT ONLY if you have a properly filled out Capital Improvement form.That basement for the builder or the water/septic for Joe Homeowner needs that cert. if you don't want to charge them tax.Again now,I'm in NY--I'm reciting NY law--yours might be different.Just remember,a builder does not enjoy any special privileges--if he doesn't want to pay sales tax he needs to prove to the state why he is exempt.Your job as the vendor is to make sure that happens--you are acting as an agent for the state.Also remember,the state will most definitely take your money if you should erroneously charge someone sales tax--they will NOT point out to you that you did not have to charge that client the tax.
So again,basically a repair is taxable,but new construction is not,BUT ONLY if you have a properly filled out Capital Improvement form.That basement for the builder or the water/septic for Joe Homeowner needs that cert. if you don't want to charge them tax.Again now,I'm in NY--I'm reciting NY law--yours might be different.Just remember,a builder does not enjoy any special privileges--if he doesn't want to pay sales tax he needs to prove to the state why he is exempt.Your job as the vendor is to make sure that happens--you are acting as an agent for the state.Also remember,the state will most definitely take your money if you should erroneously charge someone sales tax--they will NOT point out to you that you did not have to charge that client the tax.