Sales Tax? Do you pay it on your Chemicals?

[rick imby]

I don't live in a state with sales tax so I don't know sh*t.

I know that anything bought for resale normally isn't taxed until it is resold. If you are paying sales tax on your chemicals and then charging the customer for your services and they have to pay tax again, my train of thought is you should be able to get the sales tax money you paid back.

If carpet cleaning services are not charged sales tax in your state is the reason you pay sales tax, you could put another line in your sales invoice with "cleaning chemicals .10" and charge the customer sales tax on that amount.

Do you have to collect sales tax in your state for carpet cleaning services? And do you pay sales tax on your equipment and your consumables?

 

[SamIam]

No tax on a service in California yet.

Some douche bags will break the work
Order into labor and chemicals and charge tax on the chemical.

Pretty sure they to that to increase the bill and not pay that tax to the state.

 

[rick imby]

Sam, are you paying sales tax on your chemicals?

 

[Jim Nazarian]

I am not adding another line on my invoices, most of my clients are in the upper tax brackets & don't need to be reminded that ~50% is already taken as it is, I want to leave them with a smile & good thoughts .

I also don't need the additional bookkeeping & potential red flags from the IRS.

I try to order supplies from out of state, save the 9% sales tax, usually get free shipping & don't waist time sitting in LA traffic.

 

[Cleanworks]

Although you may pay sales tax on your chemicals, I don't think you can charge tax as you use them. You can only charge if you resell them in the original form you received them in. Your supplier pays tax and charges tax and has a state tax number to recoup the taxes paid if it anything like Canada. How would you calculate how much chemical you used on a job and how much tax you have to charge on it? Can you imagine calculating 4 0z of prespray, I paid $3.00 state sales tax on 128 0z., 8oz of rinse, 12 oz or deodorizer, 1-quart of protector, used 1 vacuum bag, etc. You would be pulling your hair out by the end of the day.

 

[SamIam]

When I purchase them yes, but I'm using them not reselling them!

Guys use to write a $150 bill. $40 labor $110 chemicals sales tax $11.00 on the chemicals $161 total. And keep the $11 and not pay any taxes they collect, they don't have a resale license it was a scam to charge more.

If you have a resale license and are actually reselling a product fine but when you collect the taxes pay them.

 

[Charlie Lyman]

So if I spend $10,000 in a year in chems, I pay $600 in taxes. If I do 6000 jobs I need to make .10 more per job. Wow, now that I look at it from this perspective, I don't know how I stay in business.

 

[bob vawter]

ya...i'm SURE everyone here pay their taxes!

 

[Russ T.]

I collect sales tax from our customers.

I don't have a local distributor so almost all chems are bought sales tax free.

 

[SamIam]

ya...i'm SURE everyone here pay their taxes!

I don't care either way but if you want to sleep with one eye open go for it.

 

[Lee Stockwell]

Most states expect, and legally are due sales tax revenue on out of state untaxed purchases.

Kentucky as yet does NOT have sales tax on most services, but that is gradually changing. There IS a section on tax forms to calculate uncollected sales tax on out of state purchases. Your signature on that form means a systematic omission to pay could invite criminal prosecution and fines.

Check with a "real" expert and do your best to operate legally.
Big brother is watching us.

 

[Old Coastie]

I pay sales tax. I charge a "materials charge" that roughly covers fuel and Then I pay tax on the gross minus deductions.

I do NOT itemise every ounce, because the State of Alabama gives me no incentive to do so. Nor will I volunteer my time to essentially be their enforcement agent against my own business.

Honest books, simplicity and a cheery grin for this old Coastie.

 

[Papa John]

I am not adding another line on my invoices, most of my clients are in the upper tax brackets & don't need to be reminded that ~50% is already taken as it is, I want to leave them with a smile & good thoughts .

I also don't need the additional bookkeeping & potential red flags from the IRS.

I try to order supplies from out of state, save the 9% sales tax, usually get free shipping & don't waist time sitting in LA traffic.

Sorry to break it to you Jim & others....
when you buy supplies or equipment online or out of state of California, the State expects you to pay the "Use Tax" which is equal to about the sales tax...
To make owning a biz in California even worst--- The State has a Business Property tax--- Which is a tax on the equipment and supplies remaining in inventory.!
I say we All move to Carson Valley, NV.

 

[rick imby]

Or move to Thailand...

 

[Mikey P]

To clean dirt floors?

 

[SamIam]

No For spicy food

 

[steve_64]

No for young naive girls