Ive been noticing more and more that when i approach a manager to discuss my services, they will often show me an invoice of their current window cleaner. Now, these are professional invoices, from local and regional window cleaning companies. With that said, I would honestly say at least half or more will just have a rounded number as the price paid for services. I talked to a local Sprint wireless store today, and the invoice said “$34”, no tax. There was a place on the invoice for tax, but it was blank. Im seeing this all the time, is there something Im missing here?
Charging sales tax can vary from state to state depending on what service you provide. Also, the window cleaning company invoices you are seeing could still be paying the sales tax they owe…maybe?
So if theyre paying it but not charging it, arent they losing money? Im a rookie to all this legit tax stuff so maybe i just dont get it.
if the accounts are paying them through corporate (check) then probably, if cash, then maybe not. For our store front/commercial cash accounts, I don’t wont to bother the change so we charge up to the dollar. For example, if it’s a $20 cash account, I’ll charge them $22 rather than $21.40 (7% sales tax charge).
Granted I’m not CPA, so I’d listen to one of them instead of me If I were you 
Bottom line though, if the state does require sales tax, you better be collecting it and paying it. I talked to an owner of a restaurant once and he said an audit from the state was more difficult to deal with than an audit from the IRS.
Anyone ever been visited with a state tax audit?
Ahhh, I see. Just rounding up. That makes sense.
I don’t charge tax either (don’t have to for my business here in IL), and pay taxes accordingly every year. I still make money.
I’m glad we don’t pay sales tax on services in Idaho…
I know that in AL, TN, TX and NC, sales tax is not charged for services rendered. Don’t know about Ohio.
Not so lucky here in NJ. Worse in Philadelphia!
We do have to charge sales tax in Texas. Yes it stinks when others skirt it but we don’t have a state income tax.
Ike
No sales tax on services rendered in utah only when you sell a product. But some companies still charge taxes on services and hope people don’t notice so they make more money they just adjust it to help pay for their income tax.
This sounds illegal to charge a tax when the state doesn’t require it. If not illegal, then definitely unethical.
Collecting 6% tax on window cleaning has been required in PA since 1993. I’d hate to get audited by the state and have to cough up money I had never collected and sent to the capital!
[MENTION=6757]Mean Streak[/MENTION]: In Ohio, we DO have to charge sales tax. You need to have a vendors’ license thru the state as well, in order to legal. (If you need more info for our state, PM me and I’ll help you out.)
No…we collect sales tax (8.25%) for services here in Texas.
In N.Y. i have to add 8.3/8% tax to all my services.
John upstate I mean really upstate the sales tax varies between 7 - 8 % depending on the county.
some businesses just dont charge tax and some do…I dont charge any tax to my customers
No sales tax in WA state.
