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Started By
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sales tax on labor, yay or nay?
Posted on 1/4/17 at 12:06 pm
Posted on 1/4/17 at 12:06 pm
I see some people charge sales tax on labor, most shops and larger companies do for sure. I thought sales tax was only for tangible items sold. ie the items you buy without tax (wholesale) and then resale with tax that you give the state/parish.
I have done both and paid both, I stopped charging sales tax on labor because I thought it was unfair to customers, but others told me it's required. My parish tax field rep told me it wasn't. A lot of fellow business owners I have talked to say they charge both and only claim tangible items when filing, so basically they make an extra 10% on labor, which is wrong IMO as well.
I never got a straight answer and want to start the new year doing it right. (though since labor is more than item sales for the most part, it will mean more headache as far as paying the five entities I pay tax to monthly)
I have done both and paid both, I stopped charging sales tax on labor because I thought it was unfair to customers, but others told me it's required. My parish tax field rep told me it wasn't. A lot of fellow business owners I have talked to say they charge both and only claim tangible items when filing, so basically they make an extra 10% on labor, which is wrong IMO as well.
I never got a straight answer and want to start the new year doing it right. (though since labor is more than item sales for the most part, it will mean more headache as far as paying the five entities I pay tax to monthly)
15
Posted on 1/4/17 at 12:11 pm to Napoleon
As a fellow business owner, I feel your pain. I don't tax on it and I don't pay on it but who the hell knows?
This is why the Flat Tax (cue some Poli Board whacko) is the way to go. We should all just pay a flat amount on tangible goods we buy and keep the rest of our money.
This is why the Flat Tax (cue some Poli Board whacko) is the way to go. We should all just pay a flat amount on tangible goods we buy and keep the rest of our money.
Posted on 1/4/17 at 12:13 pm to jbgleason
quote:
This is why the Flat Tax (cue some Poli Board whacko) is the way to go. We should all just pay a flat amount on tangible goods we buy and keep the rest of our money.
I haven't kept up ... but is the Trump administration open to this?
Posted on 1/4/17 at 12:14 pm to Napoleon
Is there still no alcohol tac in EBR?
I remember in college a 2 dollar beer cost 2 dollars but Pluckers charged tax on it. I fricking hated they did that and would get them to remove the tax. No telling how much money Steve scammed doing that over the years.
I remember in college a 2 dollar beer cost 2 dollars but Pluckers charged tax on it. I fricking hated they did that and would get them to remove the tax. No telling how much money Steve scammed doing that over the years.
Posted on 1/4/17 at 12:14 pm to jbgleason
It's odd that there isn't a set rule. The parish and state just want their respective 4.x% and that's it.
Just it's so much easier to file if I only claim actual tangible item sales.
Just it's so much easier to file if I only claim actual tangible item sales.
Posted on 1/4/17 at 12:31 pm to CarRamrod
Alcohol sales aren't exempt from sales tax
Posted on 1/4/17 at 12:34 pm to Napoleon
My understanding is that it depends on the task and what you are working on.
Sales tax in louisiana is way too complicated. Its complete bullshite.
Sales tax in louisiana is way too complicated. Its complete bullshite.
Posted on 1/4/17 at 12:43 pm to Napoleon
I read this 3 times and it made no sense. Then I realized it said labor and not Labor Day.
Posted on 1/4/17 at 12:48 pm to OysterPoBoy
It is usually very industry specific, some industries require it and some don't. Like construction labor generally does not, but at the same time if you buy carpet and pay for the install at the same time they will charge occasionally.
Given that, is it not illegal to charge sales tax and not pay the state what you have received? It should be.
Given that, is it not illegal to charge sales tax and not pay the state what you have received? It should be.
Posted on 1/4/17 at 1:02 pm to Napoleon
My businesses are out of state.
On labor I only charge if the tax district requires the company or person providing the labor to charge it.
On labor I only charge if the tax district requires the company or person providing the labor to charge it.
Posted on 1/4/17 at 1:23 pm to Napoleon
LA Dept of Revenue
quote:
Under certain circumstances, labor charges are taxable. Labor to fabricate or repair movable property is taxable. Labor charges to construct or repair immovable, or real, property are not subject to sales tax.
Posted on 1/4/17 at 2:32 pm to Ford Frenzy
quote:they used to be.
Alcohol sales aren't exempt from sales tax
Posted on 1/4/17 at 2:34 pm to Napoleon
Not supposed to have sales tax on labor/service only for product/materials.
Posted on 1/4/17 at 2:36 pm to dcrews
quote:
Under certain circumstances, labor charges are taxable. Labor to fabricate or repair movable property is taxable. Labor charges to construct or repair immovable, or real, property are not subject to sales tax.
Sounds pretty straightforward...until you and the Parish have a difference of opinion of what is moveable vs. immovable. Then World War 3 starts
Posted on 1/4/17 at 2:36 pm to Napoleon
I was told to charge it, even for windshield repairs. Technically I'm selling the resin I put in a windshield.
Posted on 1/4/17 at 2:38 pm to Napoleon
My company's accounting office tells me that if it says "repairs" on the invoice, that tax must be added. If it is installation labor that it is not.
I know this sounds dumb, but that's what I am told.
I know this sounds dumb, but that's what I am told.
Posted on 1/4/17 at 2:40 pm to windshieldman
quote:
I was told to charge it,
By whom? The tax collector
We don't charge any tax on labor but this is in Alabama.
Posted on 1/4/17 at 4:32 pm to dcrews
quote:so I should be charging tax.
. Labor to fabricate or repair movable property is taxable
Damn, that complicates things.
Posted on 1/4/17 at 4:33 pm to The Mick
quote:this is my belief but when you read the tax info it sounds like you are supposed to charge to service a moveable.
Not supposed to have sales tax on labor/service only for product/materials.
Posted on 1/4/17 at 4:34 pm to Napoleon
we don't tax labor either.
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