Sales Tax Illinois

[kazslo]

What is the name of your state? Chicago, Illinois

Hi,

I am in the process of starting a cellular repair business here in Illinois (sole proprietorship). I buy most of my parts off of the internet from other countries or out-of-state, so I have not been charged any sales tax. I know I should be charging sales tax on the parts to my individual customers, but what about the stores/businesses that I do repairs for? Since they will be reselling the entire phone, does the sale of the part get taxed, or are they exempt from sales tax and the part will be treated as something that will be resold?

Thank you.

 

[efflandt]

There is no sales tax on service. For parts, you may need to collect and pay sales tax for end users, but not necessarily a reseller if you have their reseller ID and keep proper records. For more info see http://www.revenue.state.il.us/publications/pubs/pub-104.pdf

Also see http://www.revenue.state.il.us/legalinformation/regs/part130/130-120.pdf

The sales and use tax faq URL is a bit long, but a link to it with other questions/answers is at http://www.revenue.state.il.us/Individuals/SalesandRelated/index.htm