Sales Tax Question

[dgiles79]

I know this will be city/state specific, (and I am applying for my business license tomorrow, so I will probably find out then), but i'm curious if you do an upgrade job (Install additional RAM for example), do you charge sales tax on the part but not on the labor? Or since I would have already paid sales tax when I purchased the part originally, would that be double taxation??

 

[pceinc]

The first part of your question will depend on your local city/state laws.
With regards to the second part, when you purchase an item for resale it should be tax free to you once you have submitted your tax ID to the vendor. If you are purchasing something retail and intend on reselling it, the tax you pay becomes part of your COGS. You will also charge tax when you resell it.

Make sense?

 

[JAG Computers]

I know this will be city/state specific, (and I am applying for my business license tomorrow, so I will probably find out then), but i'm curious if you do an upgrade job (Install additional RAM for example), do you charge sales tax on the part but not on the labor? Or since I would have already paid sales tax when I purchased the part originally, would that be double taxation??

Which state do you live in? This will be the most determining factor as to what you charge sales tax for.

Check out the Small Business Administration site. This has been an excellent resource for me as I get things off the ground.