Charging Taxes on materials to customers

[supervisorrick]

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]

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]

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.

 

[supervisorrick]

Parts, yes. Supplies used for labor, no. In other words, you sold the customer a nut...you didn't sell the customer solder.

You had to add the solder to the joint, so what is the different of a wire nut added, and solder?

 

[adjusterjack]

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.

 

[FlyingRon]

I'd point out that repairs to tangible personal property is entirely taxable (materials and labor). If the AC isn't "built in" (like a window or portable unit), you need to collect/remit tax on the entire bill.

http://floridarevenue.com/Forms_library/current/gt800010.pdf

 

[PayrollHRGuy]

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.

 

[FlyingRon]

Eh? Did you not read the part where it said "Even if the parts are provided at no charge?"