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Posted on 1/4/17 at 6:05 pm to crispyUGA
You would be in trouble in louisiana depending on the task if the state and parish find out.
Posted on 1/4/17 at 6:37 pm to Napoleon
Worked for 10 years at a retailer that offered installation services and they were very "by the book" on accounting for everything. There's no sales tax on services, only on tangibile products. Anyone who adds sales tax to services is doing it to make an extra 9-10% profit on labor
Posted on 1/4/17 at 6:40 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.
Flat tax = the same income tax rate for everyone, regardless of income. What you describe is the Fair Tax, which is a much better idea and would allow us to pretty much shut down the IRS.
Posted on 1/4/17 at 7:30 pm to THRILLHO
I work in industrial construction for a major oil company and review (before paid) millions
of dollars of construction invoices every month. Generally only materials and rentals are charged sales tax. Labor should not be taxed.
Where it does get sticky for us is if a scaffolding company charges an all in rate for
Rentals and labor together. We usually get taxed in this case.
of dollars of construction invoices every month. Generally only materials and rentals are charged sales tax. Labor should not be taxed.
Where it does get sticky for us is if a scaffolding company charges an all in rate for
Rentals and labor together. We usually get taxed in this case.
Posted on 1/4/17 at 7:48 pm to JasonL79
No sales tax charged on the repair of an immovable but if the vendor wants to pass on the sales tax paid, they can do so but can not charge it as a separate line item on the invoice.
The definition of immovable is sketchy and like another poster said, the parish and state have differing views on what an immovable.
The definition of immovable is sketchy and like another poster said, the parish and state have differing views on what an immovable.
Posted on 1/4/17 at 8:09 pm to Napoleon
There are regs in every state for labor charges. And in tax, IT ALWAYS depends. The rules are out there, and there is no blanket answer. I do sales and property tax and it just depends on the where and the what, but the rules can be found. Most people do not understand this.
Posted on 1/4/17 at 8:26 pm to Will Cover
Nope
Posted on 1/4/17 at 8:51 pm to Napoleon
Is the carpet cleaner or pest control guy supposed to charge sales tax?
Posted on 1/4/17 at 9:40 pm to Tiger Prawn
quote:
Worked for 10 years at a retailer that offered installation services and they were very "by the book" on accounting for everything. There's no sales tax on services, only on tangibile products. Anyone who adds sales tax to services is doing it to make an extra 9-10% profit on labor
thats simply not true. Labor to fabricate or repair a movable is subject to sales tax.
For instance, a plumber repairing a pipe in a house is not taxable, because the house is an immovable. Since the house is an immovable, the way the law states is that if the item you are working on cannot be removed from the immovable without substantially damaging it, then it is considered immovable. Stuff like an AC unit, plumbing, electrical, etc all fall under immovable.
Lets say you are working on someones computer, that is taxable because the computer is considered a movable because you could remove the computer from the house and not damage it at all.
Here is a bulletin from the state that discusses the difference between a MRI unit installed permanently is not taxable to the customer and one that is portable is taxable.
LINK
Posted on 1/4/17 at 10:55 pm to diat150
You could be right. I was in flooring sales and we didnt charge any tax on installation services. But I guess that falls under the immovables like you mentioned
Posted on 1/4/17 at 11:16 pm to Tiger Prawn
Even if one 'over-collected' sales/use tax, my guess is that the vendor collecting the tax holds it in trust for the state/municipality until it is remitted and that their is duty to remit even if the amount is in excess of what should have been collected.
Posted on 1/4/17 at 11:33 pm to Napoleon
In my mind, if the labor is the end product that you're selling, then that should be taxable by a sales tax. In your particular line of work, your labor is your main product (though you do sell parts, which are definitely taxable), but the labor should also be taxable because your labor is the main part of your business. However, if you're building a product like a house or a car in a factory, then that labor should not be taxable under a sales tax because the labor itself is simply an input into producing the good that is taxable under a sales tax.
Of course, my thoughts mean nothing put up against the law, and the state of Louisiana may disagree (it does love to tax EVERYTHING), but my personal thoughts on what's subject to a sales tax simply comes down to "that which is sold to an end consumer on the open market is subject to a sales tax". The labor of the supply chain should not be subject to sales taxes, only the final product/service.
Of course, my thoughts mean nothing put up against the law, and the state of Louisiana may disagree (it does love to tax EVERYTHING), but my personal thoughts on what's subject to a sales tax simply comes down to "that which is sold to an end consumer on the open market is subject to a sales tax". The labor of the supply chain should not be subject to sales taxes, only the final product/service.
This post was edited on 1/4/17 at 11:50 pm
Posted on 1/5/17 at 8:16 am to TigerstuckinMS
what this boils down to is the sales tax code is way too complex, and IMHO it puts the burden of determining what is considered a movable/immovable onto the wrong person. The person collecting the tax should not be responsible for determing what is what, The end user should. That way if the state determines something was done wrong only 1 party is involved. Im not sure how it works, but It seems like it would be a huge ordeal if either the state or the end user would determine that they were incorrectly charged tax. From my perspective, I will lean to charging tax if the situation is questionable, because You can refund the customer the tax, and then ask the state for the refund. Good luck getting a customer to pay tax 10 months down the line if the state audits and determines something should have taxed. You will be on the hook.
Its bullshite.
Its bullshite.
Posted on 1/5/17 at 9:21 am to liz18lsu
I repair moveables (Appliances) by definition even built in appliances and air conditioning would be moveables.
It's iffy because I have gotten different answers from different professionals.
If I don't have to pay the money I won't, if I do have to collect I will.
I do think many who collect do so to make an extra 10%
It's iffy because I have gotten different answers from different professionals.
If I don't have to pay the money I won't, if I do have to collect I will.
I do think many who collect do so to make an extra 10%
Posted on 1/5/17 at 9:32 am to Napoleon
The short answer is it depends on the service you are providing. Every state has different definitions of a "service" and what is exempt from sales tax. It seems that in the state of Louisiana repair of movable objects (in your case appliances) are subject to a sales tax. This is a straight forward question that a CPA knowledgeable in the subject or the Dept. of Rev could answer for you pretty easily.
An example of the different codes is roofers in La and Tx. In Tx roofers are not considered the end users of the materials (i.e shingles) so they are issued a resale certificate and do not pay tax on those materials. Therefore they must charge tax on the service they provide. In La the opposite is true. The roofer pays tax on the shingles because they are the end user and their service is sales tax exempt to the client having the roofing job done.
An example of the different codes is roofers in La and Tx. In Tx roofers are not considered the end users of the materials (i.e shingles) so they are issued a resale certificate and do not pay tax on those materials. Therefore they must charge tax on the service they provide. In La the opposite is true. The roofer pays tax on the shingles because they are the end user and their service is sales tax exempt to the client having the roofing job done.
Posted on 1/5/17 at 9:43 am to Mingo Was His NameO
see the confusion was, some consider built in appliances like dishwashers and some fridges immovable and others like dryers and washers moveable.
I had different experts tell me different things. Most appliance repair companies do tax labor. I just never knew for sure. I calculate weekly collected sales tax and then transfer that to a savings account until I pay the LDR or parish. Makes it really easy to track. I only put sales tax and personal tax withholdings in that account.
I had different experts tell me different things. Most appliance repair companies do tax labor. I just never knew for sure. I calculate weekly collected sales tax and then transfer that to a savings account until I pay the LDR or parish. Makes it really easy to track. I only put sales tax and personal tax withholdings in that account.
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