I don't know about California, but in Utah you tax everything that is on the invoice... so that would include all fees... unless I wanted to do 2 separate invoices...
Thanks,
Jeron
Thanks,
Jeron
California BOE Tax Question
When taxing the customer, can we just tax the blank t-shirt and mark-up, and not tax the rest of the printing fees?
For example; can we tax the blank t-shirt (including mark-up) at, say, $5, and leave it at that?
Or, do we have to tax the whole deal? So, shirt, mark-up, printing, etc.. = $11. Tax the whole $11?
Hope that makes sense, lol.
Thanks for the help, appreciated.
For example; can we tax the blank t-shirt (including mark-up) at, say, $5, and leave it at that?
Or, do we have to tax the whole deal? So, shirt, mark-up, printing, etc.. = $11. Tax the whole $11?
Hope that makes sense, lol.
Thanks for the help, appreciated.
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I'm in Cali, you tax sales price. If I sell a shirt for $20 but my cost is only $8, tax is due on $20.
Yea that is how it is worded in Utah as well... sales price... couldn't remember that term lol...
Thanks,
Jeron
Thanks,
Jeron
You tax it all your materials were purchased without tax so do so at the retail end
Thanks guys. I just thought I read something a while back where some printers were only taxing for the shirt, and mark-up.
All the supplies are purchased without tax so you need to charge tax on the final sale.
A buddy of mine recently asked why we were charging tax for everything, as he builds houses and said he doesn't charge tax on his labor.All the supplies are purchased without tax so you need to charge tax on the final sale.
I mentioned it to another friend that does vehicle wraps, signs, stickers, etc... and he said he doesn't charge for labor either.
It just my curiosity going. I guess it all comes out in the wash either way, but it would be easier to discipline ourselves to not dip into that tax money before we send it off. Less there, less temptation, lol.
When you go to Sears and buy a shirt do they charge tax on part of the garment? No. In California you charge tax on the entire job. If you don't and get audited you will have to make up the difference.
When you go to Sears and buy a shirt do they charge tax on part of the garment? No. In California you charge tax on the entire job. If you don't and get audited you will have to make up the difference.
No, but Sears is a store, not a screen printing shop.
My point being are we all sure that it has to be taxed this way?
We have to tax the complete amount charged to the customer because our t-shirt verdors aren't charging us tax, that's it?
Why is a guy that does vehicle wraps not taxing for labor? I asked him again, and he said his accountant stated "you don't have to charge tax on your labor". How's vehicle wrapping differ from screen printing, besides the obvious. He buys material, prints on it, applies. We buy shirts and print on them. Vehicle wrap: material/print/labor. Screen printing: material/print/labor.
His accountant could be wrong I guess.
True but some states make you tax thing that are "tangible" (I believe that's the term) that means anything that you can pick up and move with you to another place I have to tax even on my labor. My day job is construction, and I used to do handyman stuff on the side. If I worked on someone's deck I didn't have to charge tax on my labor. If I worked on their swing that sat on their deck I did...
Plus you don't gain anything by not charging tax on your labor for screen printing... sure the consumer would pay a tiny bit less... but they don't care.. they see tax and that's normal.. it would be a pain to separate labor and materials on every invoice in my opinion anyways... because with all my prices my labor is built into my price...
Thanks,
Jeron
Plus you don't gain anything by not charging tax on your labor for screen printing... sure the consumer would pay a tiny bit less... but they don't care.. they see tax and that's normal.. it would be a pain to separate labor and materials on every invoice in my opinion anyways... because with all my prices my labor is built into my price...
Thanks,
Jeron
Right on, I see your point on "tangible". I'll look into it more. I would rather have less tax money in my hand to be responsible for, requiring discipline is all. That way it would be easier to keep my hands out of it, lol.True but some states make you tax thing that are "tangible" (I believe that's the term) that means anything that you can pick up and move with you to another place I have to tax even on my labor. My day job is construction, and I used to do handyman stuff on the side. If I worked on someone's deck I didn't have to charge tax on my labor. If I worked on their swing that sat on their deck I did...
Plus you don't gain anything by not charging tax on your labor for screen printing... sure the consumer would pay a tiny bit less... but they don't care.. they see tax and that's normal.. it would be a pain to separate labor and materials on every invoice in my opinion anyways... because with all my prices my labor is built into my price...
Thanks,
Jeron
If you break out your labor you are going to need a consistent labor schedule by the hour or whatever you use on every job. That is the only way I can see this as being done without problem.
An easier way is the call the BOE and ask them.
An easier way is the call the BOE and ask them.
When printing a shirt you are adding value therefore you cannot separate the labor cost.
The only non taxable portion on my invoices are the screen preparation charges (California). Screens are classified as tools and ownership remains with me.
The only non taxable portion on my invoices are the screen preparation charges (California). Screens are classified as tools and ownership remains with me.
1 - 14 of 14 Posts
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