I charge hourly for my computer repair service. I work in Manhattan. Is there tax on top of my hourly rate that I will owe the government (i.e. do i need to charge sales tax)? Also, if I buy items for clients from Newegg.com, an online retails store (that doesn’t charge sales tax) and mark them up 10% do they need to pay sales tax?
You must collect and render sales taxes on both your labor charges and the goods that you sell to your customers. Here’s an extract from the NYS tax department website:
Question
What is subject to sales or use tax?
Answer
Sales of the following are subject to sales or use tax:
* Most tangible personal property, such as: furniture, clothing, machinery and equipment, books, computers, boats, candy, cosmetics, cigarettes and tobacco, jewelry, art, collectibles, animals and plants, and building materials.
However, certain property is not subject to tax (that is, exempt from tax), such as: most food; medicines and certain medical equipment; periodicals; and college textbooks.
* Most services are not subject to tax, but certain services are, including but not limited to: maintaining, servicing, and repairing both tangible personal property and real property (land and buildings); and certain information services.
Here’s a link if you want more information: http://nystax.custhelp.com/cgi-bin/nystax.cfg/php/enduser/std_adp.php?p_faqid=869&p_created=1076010321&p_sid=FYuIrhOj&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD03MzEsNzMxJnBfcHJvZHM9JnBfY2F0cz0mcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9Mw!!&p_li=&p_topview=1