USA Sales Tax - Manufacturer


Joined
Jan 13, 2020
Messages
1
Reaction score
0
Country
United States
Hi All,

We recently paid a contractor to move a machine that produces custom sheets of metal, which we then sell.

We owe the sales tax on that, correct?

This might be a dumb questions, I just want to confirm.

Thanks.
 
Ad

Advertisements

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
456
Reaction score
35
Country
United States
No sales tax is generally not due on services. Moving a machine you already own is a service. If there were tangible assets that you acquired as a result of the move, then you might have a sales tax issue. But only if those tangible assets were significant and not incidental to the service provided.

The above discussion is general sales tax rules. If the contractor had to construct something, then you more than likely acquired significant tangible property and the service to move the machine may have been incidental.

Also sales tax laws vary greatly from state to state, county to county, and city to city. Thus you have to confirm with your local laws as to whether it is taxable. But in general service is not sales taxable.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top