pinoyheat551
New member
I had a customer today that fought me on taxes. She claims to be an CPA. She tells me that services cannot be taxed. Is this true?
Taxes on services?
- Thread starter pinoyheat551
- Start date
David Fermani
Forza Auto Salon
It's confusing actually. Services are taxable in some areas I believe. And not in others. Body shops charge for a service and collect tax on it, don't know why a detailer can't?
Barry Theal
New member
Services aren't taxable. She is correct.
David Fermani
Forza Auto Salon
David Fermani
Forza Auto Salon
Go to this site: FTA 2007 Services Taxation Survey and scroll down to Automotive Washing & Waxing
Envious Eric
New member
I THINK, and dont quote me, but if you detail a car for a wholesaler who is going to turn around and sell the car, then you should charge tax. If you are detailing a car for someone for appearance standards, then you dont have to...
Envious Eric
New member
I THINK, and dont quote me, but if you detail a car for a wholesaler who is going to turn around and sell the car, then you should charge tax. If you are detailing a car for someone for appearance standards, then you dont have to...
according to davids link, CA is exempt
according to davids link, CA is exempt
C. Charles Hahn
CCH Auto Appearance, LLC
David Fermani said:
Indeed. Michigan has been considering a service tax for a while now, and it's sounding like it might actually happen.
Barry Theal said:
In PA that is not the case. Customers have to pay sales tax on auto services unless they have an exemption from the state, in which case they have to provide you with an exemption certificate.
061 Pa. Code § 31.5. Persons rendering taxable services.
See #4.
WAS
Driven
Gotta love us up here in Canada, everything except very specific industries (doctors, groceries) are subject to country-wide 5% GST (Goods & Services Tax), and some provinces have an additional PST (Provincial Sales Tax). And there are a few jurisdictions where they have HST (Harmonized Sales Tax), which is just both GST and PST combined. You guys have wayyyyyy too many rules, makes it difficult for small business owners who don't have dedicated accountants on staff to figure it all out.
Barry Theal
New member
Micheal,
Very interesting that you found that. I never charge tax to Dealers as the they always provide a tax exempt number, but even retail My accountant told me to never charge sales tax on a Service rendered provided here in PA. I only charge sales tax on Items I sell. Example being products. Very Interesting. I need to look into this. Thanks for the link.
Barry
Very interesting that you found that. I never charge tax to Dealers as the they always provide a tax exempt number, but even retail My accountant told me to never charge sales tax on a Service rendered provided here in PA. I only charge sales tax on Items I sell. Example being products. Very Interesting. I need to look into this. Thanks for the link.
Barry
imported_Erik Mejia1
New member
I need to leave California. Its getting way too expensive. Good info David.