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Posted: Sun May 10, 2015 3:32 pm
by Txhotrod
So if you pay tax on all of your materials that you purchase, you still have to charge the customer tax?
I was told that I didn't have to many years ago. Has it changed now? When did it change? Based out of TX.

Re: Sales Tax

Posted: Sun May 10, 2015 5:48 pm
by SCOTTRODS
Joe, If My memory is right, You're actually charging the customer for the materials, and You're charging for the service, so you pass the taxes taxes on to the customer, for the materials (Paint and supplies) in powder coating. This includes any "surcharge for materials such as masking tape that you may calculate into every job as a percentage or anything like that.

Again, In Texas, if the labor provided is not a labor to replace something with the exact part that you remove (A Replacement of a factory original item), then you Charge tax on labor. Make sense?

Powder coating and fabircation will be the same for the finished product.

1) If it is an item you created, it is completely taxable. You get a tax exempt number for materials if fabricating stuff, and you Charge tax on the product you made...

2) If you're providing a service to the customer by powder coating the parts they supply, then you Still buy the Supplies tax exempt, and Charge tax on the finished product.

If I understand the way our state does the taxing of labor, it is only "tax free" if the part you are installing is Exact part and manufacture as the original. Replacing a Ford radio with a Ford Radio, part for part. I don't understand their reasoning for it, but it's been that way for many many years.

Re: Sales Tax

Posted: Sun May 10, 2015 11:45 pm
by Txhotrod
Well ain't that just peachy...Now I gotta restructure the entire business platform. I already have a sales tax number but it's for a different business. Yea I get to sit and waste a day at the comptroller...!#^&*%!

Posted: Mon Nov 23, 2015 7:29 am
by NewAgeInnovations
In the state of Pennsylvania there's a list on there website that states what services you're suppose to tax for. Painting/ powder coating of personal parts are a taxable service