Do I need to charge sales tax in NY for my hourly computer repair business or for products sold to clients?
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?
- Bostonian In MOLv 71 decade agoFavorite Answer
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:
What is subject to sales or use tax?
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/...
- StephenWeinsteinLv 71 decade ago
Yes, you need to charge sales tax. You also need to pay New York City unincorporated business tax, New York City income tax, New York State income tax, federal income tax, and federal self-employment tax.
- Wayne ZLv 71 decade ago
Definitely on the products.
"Certain Services" are subject to sales tax in NY. Here is a quote from the NY website:
>>>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.<<<
Your business would fall under "repairing tangible personal property" and, per this reading, you should be collecting sales tax.
- Anonymous7 years ago
I would recommend the official federal website:
Here you can find exactly what you are looking for and thats the only safe site.