Ask Experts Questions for FREE Help !
Ask
    mchristian's Avatar
    mchristian Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 6, 2009, 12:42 PM
    Sales Tax on a Service?
    Hello all,

    I was just wondering if anyone knows if you are supposed to be charged sales tax by someone who is providing a service, for example, we hired a new cleaning service to clean our new offices 2 times a week, and when we received our first invoice I noticed that
    They charged us a 6% sales tax. I was hoping someone could tell me if they are supposed to charge us that 6% or if they are just getting creative.

    Thank you,

    Mark
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Jan 6, 2009, 12:45 PM
    Quote Originally Posted by mchristian View Post
    Hello all,

    I was just wondering if anyone knows if you are supposed to be charged sales tax by someone who is providing a service, for example, we hired a new cleaning service to clean our new offices 2 times a week, and when we received our first invoice I noticed that
    they charged us a 6% sales tax. I was hoping someone could tell me if they are supposed to charge us that 6% or if they are just getting creative.

    Thank you,

    Mark


    Which State?
    de_de_gc's Avatar
    de_de_gc Posts: 66, Reputation: 4
    Junior Member
     
    #3

    Jan 6, 2009, 02:45 PM

    JudyKayTee has asked you the most important point. Sales taxes and what they are applied to is controlled by the state. In CA, there has been much talk of adding sales taxes to services, such as accounting fees and veterinary care.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Journal entry of sales tax with a service business [ 6 Answers ]

Hi, we have a small engine repair business. On the receipts there is the labor which I know is not taxable. Also there are parts we use to fix the engines that we city tax the customers for. I've been making my journal entries like this: Cash -debit, service revenue - credit, sales (these are the...

Journal entries: Sales service 100 of which 20 was on cridit [ 1 Answers ]

Hello everyone it is nice to see a community like this where everyone can learn, thank you askmehelpdesk.com and all of it people for this great and wonderful site:). I was having problem answering this part of the question, It say to do a journal entries for: Sales of Service 100 of which 20...

Sales Credit in a Sales Journal [ 3 Answers ]

2/10, n/30 :confused: COLO COMPANY Sales Journal AR Debit COGS Inv. Trans. Sales Debit Date Account Debited No. No. Credit Inv. Credit May 2 Hensel Company 8785 83 4,100 16 Hensel Company 8786 84 1,890 ...

High Pressure Sales with Private Sales Clubs [ 4 Answers ]

To Whom: Is it legal in the state of Rhode Island/Connecticut for a private sales club (Direct Buy) to force a prospective member to join immediately after a forced one hour sales pitch? Direct Buy instructs their prospective customers that if they don't apply for membership immediately they...


View more questions Search