USA General Contractor & Subcontractor Sales/Service Tax

Nov 27, 2023
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United States
Hello! I have a sales tax conundrum for someone on this thread.

I am a general contractor from NY (western NY) and I'm hiring a subcontractor to perform work in NY (western NY). My sub issues me an estimate to perform the work, lets just say it was $10,000, and there was not a line for sales tax, so it was either missed or included in the total. I added a $1,000 management fee on top of his estimate.

No one was given a Exempt Purchace cert. Subcontractor paid sales tax for materials. Who pays the sales tax for this? Do I, the GC, incur sales tax to the full $11,000, or does the sub incur tax on the $10k and I incur tax on the $1k if I don't pass it on to the customer? And if I were to pass it onto the customer, would I only pass on tax for the $1k, or the full $11k?

I appreciate your wisdom in advance! Thank you.

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