I run a computer services business, I live in the state of missouri, Am I required to charge tax for my servic
I do repair services, and only charge for labor. Do I have to charge sales tax or any other tax on my services.
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- Yes, u need to charge sales tax for all services, parts, etc. Hint: You can charge double the tax on parts u have purchased by adding the oriogonal sales tax you paid into the origonal cost of the item and then adding the customer tax on top of it. This will result in a slight overpayment of taxes for each product sold and generate a larger return at the end of the year. Idealy you need to add the customers sales tax to the item before the origonal sales tax was applied. This is called passing the tax along to the customer. Not sure how tax rates run where you are at but for us the purchasig origonal sales tax is less than the sales tax we must charge for items purchased from us by our customers. Yes there are 2 different rates for us is PA. The origonal sales tax we must pay is govered by our state, the customer sales tax is govered by federal tax laws. Don't try to figure it out, like i have been trying, just abide by it or it will drive you nuts! HA I work as a book keeper for a computer repair company, and in USA the fed gov wants tax money for everything we do. Below is our companies site. It has nothin to do with tax though. We too charge a flat rate for repairs and figure the taxes into that after the sale. So we do not make the entire said rate but only a portion once we take the taxes out of it. This way it is a solid dollar amount and we can say we charge a flat rate for labor and it looks more attractive to our customers and ALOT easier for them to guestimate in their heads what a repair cost might be.I Hope this helps you out.
- Yup. Vote for brevity!
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