Charging Tax for Hourly Service??

[rmoyes02]

Do I charge tax for Hourly Onsite Service? I'd be going to homes of my customers, and charging them by the hour.

And how do I find what percentage to charge for my State if I do?

(Utah)

Thanks

 

[lgarner]

Check with your state tax authority. When you registered with them they will have provided you with some information allong with your seller's permit. I imagine that Utah is similar to California in at least that much.

Of course, charging your customers is optional; paying to the state isn't.

 

[chiph]

Your accountant should be able to answer these questions for you.

Tax is a tough question -- services might be exempt, or not. If you do charge, the state, county & city all might want their cut.

Chip H.


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[sleipnir214]

Yeah, sales tax on services is tough. And weird.

As I recall, in Louisiana (my home state) you charge sales tax for work done at the customer's site and not for work done at your place of business. Or vice-versa.


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[lgarner]

It might be vice-versa. In CA there's an issue of whether your service goes into creating a "product", such as building a computer (taxable), or whether it's a pure service, such as installing a computer purchased by the customer (nontax).

 

[sleipnir214]

lgarner:
Perhaps. But it is wise to never underestimate the perversity of the Napoleanic Code.


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[dgillz]

sleipnir214,

I live in Alabama. Are you saying that when I travel to Louisiana to perform consulting, which happens all the time, I need to tax my customers?

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[chiph]

Louisiana might want you to charge tax, yes. But it depends on how their laws are written, as well as whether the LA tax people feel that a majority of your business comes from residents of their state, as well as whether they feel you have a "presence" in their state (do you own any property in LA?)

Best to consult a professional on this.

Chip H.


____________________________________________________________________
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[sleipnir214]

dgillz:
I used to run my own business in Louisiana, but I honestly don't remember on what services I had to charge sales tax. But with Louisiana's unique legal system, anything is possible.

To echo chiph, consult a professional.


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