Sales Tax

[JBenson 14]

I just started washing garbage trucks and after sending a few invoices they told me today that i need to charge them sales tax for the washing. I know this can vary from state to state but is anybody else charging sales tax on any of their services?

Paul, your in wisconsin, maybe you will see this and help me out.

[grizzley 14]

It's best to call your state's sales tax office and ask. As you stated, most states vary on what you tax and what you do not tax. It's better to ask them rather than someone on a BB.

[racechaser 64]

In our state, if you sell a product you collect sales tax. If you provide a service you don't.

Example would be: You sell a gallon of truck wash soap, you would collect tax vs. washing a truck no tax.

Scott

[Camelot 68]

Same in NC...no tax on service, only products...

[Mike Williamson 198]

In Florida, if you provide a service only, no sales tax. If you provide a product, you have to charge tax on both the product AND the service. If you use the customer's materials, you still have to charge tax on the service.

Just make sure that if you DO have to charge tax, you make sure you report it ALL and send it in! People have gone to jail for charging sales tax and not reporting it.

[grizzley 14]

In one state we do work, you charge sales tax on services that you do TO a building, but not the outside (concrete). So if you do their KEC, you charge tax. If you do their concrete, you do not charge tax.

In another state, you carge tax on EVERYTHING.... no matter WHAT. And, you get to put up a non-refundable $1,000 deposit to get a tax permit.

[grizzley 14]

Not sure if this will help.

http://www.dor.state.wi.us/faqs/pcs/topics.html#t2