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Charging Taxes on materials to customers

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In the state of Florida, is a service company suppose to charge taxes on service jobs for materials for use on the job in a customers home such as AC or appliance repair that required only labor and did not need a manufacture part replacement?

For example: Fixed broken wire in an AC. But used extra wire nut to solve issue. Repair company provided wire nut that they purchased from a supplier.

Another example: Service company welded a leak in a copper line with an oxygen and acetylene tank and added solder.
 

PayrollHRGuy

Senior Member
Yes, parts are subject to sales tax just like if you went to Home Depot and purchased the part.

I don't quite understand your second example because you don' make it clear what you paid the sales tax on.
 

Zigner

Senior Member, Non-Attorney
In the state of Florida, is a service company suppose to charge taxes on service jobs for materials for use on the job in a customers home such as AC or appliance repair that required only labor and did not need a manufacture part replacement?

For example: Fixed broken wire in an AC. But used extra wire nut to solve issue. Repair company provided wire nut that they purchased from a supplier.

Another example: Service company welded a leak in a copper line with an oxygen and acetylene tank and added solder.
Parts, yes. Supplies used for labor, no. In other words, you sold the customer a nut...you didn't sell the customer solder.
 

adjusterjack

Senior Member
Because the wire nut went to the repair.

You used only part of the solder and kept the rest for future jobs. If you had left the roll of solder with the customer, or used the whole roll, it would be a different story.
 

PayrollHRGuy

Senior Member
I'll disagree. If you repair a tangible personal property item, then you must collect/remit tax on the entire repair, not just the materials.
Further research seems to support that. But it seems if it is labor only there is no sales tax at all so it would seem that a plumber would be better off upping his labor rate and throwing in the small stuff.
 

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