Services Taxable
May 1st, 2011
Question: Are professional services taxable?
When having someone put in new windows on our house, we were charged sales tax on both the parts and installation labor. I thought only purchases are subject to sales tax. Is this a state law or federal?
Answer: State laws govern what's taxable and what's tax exempt. Check with your state's tax authority. See, for example, a quote from the California Board of Equalization web site:
"Retail sales of tangible personal property in California are generally subject to sales tax. Examples of tangible personal property include such items as furniture, giftware, toys, antiques, clothing, and so forth. In addition, some service and labor costs are subject to sales tax if they result in the creation of tangible personal property."
Millions in profits and a tax bill ($0) to envy
They are high-tech companies, financial players, and manufacturers. What they all have in common: They paid no federal income taxes last year, despite making millions of dollars in profits.
HST for physicians, doctors, dentists, and medical practitioners in Canada
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