Help: Shop billing methods?

[Sal33n]

I just have a quick question. Just finished my initial build and had my work done by a reputable shop. My invoice was substantial with all the work that was done and I was going overt it and noticed that I was charged tax on the labor and freight. I'm in Fl so maybe all states are different on this. Any help would be great.

[Jason @ 281m]

Originally Posted by Sal33n

I just have a quick question. Just finished my initial build and had my work done by a reputable shop. My invoice was substantial with all the work that was done and I was going overt it and noticed that I was charged tax on the labor and freight. I'm in Fl so maybe all states are different on this. Any help would be great.

Your local legislation will dictate how sales tax is applied. In CA, if you mark up freight you are supposed to charge tax since their was profit. I would call your local tax office and ask. And just because another shop/business isnt doing it doesnt mean that its correct.

[Kendog]

For shipping of goods below is the exception otherwise you must pay sales tax on shipping fees.

Exemption

• Transportation charges are only exempt from sales taxes when two circumstances are both met. Firstly, the transportation charge must be listed separately on the invoice. Secondly, the purchaser must have a way of avoiding the transportation charge. This could include the purchaser collecting the item in person or arranging for a third party to collect and deliver the goods. A seller that lists a separate shipping and handling fee but makes this fee mandatory will have to pay sales tax on the total price, including this fee.
  
  

As for the Labor here is how they get you. If any taxable part is used as a part of the repair then you must pay sales tax on the labor even if the person doing the labor provides the part free of charge. So really the only way labor is tax free in Florida is if there are no parts used in conjunction with the labor (IE. Welding or tightening a loose bolt or repairing a loose wire would not be taxed, but if the bolt fell out and had to be replaced then you would have to pay sales tax on the labor).

Hope that helps sounds like your shop was following the rules for Florida....

Ken

[Sal33n]

Thanks guys. This can be locked or deleted.