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This is what makes ME crazy!!

Started by sofadoc, March 27, 2011, 07:06:12 pm

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bobbin

In Maine there is both a Sales Tax on materials and a Service Provider Tax.  Both are 5% (mercifully).  But, if you are simply repairing something and no new materials are involved in the repair (alterations) there is no tax. 

Like June and Sofa. I insist on a resale certificate if my work is for someone who will be "passing it along". 

SteveMoke

In the UK we have VAT = value added tax which has recently risen from 17.5% to 20%

Way it works is if your turnover hits £72.000 a year, then you have to register with the tax robbers to be VAT registered, this means that on any invoiced work (actual material & labour costs) 20% is then added to the bill. VAT is charged by just about all the suppliers because they are more likely to turnover 72 grand a year. The good thing is if your registered, then you are able to reclaim all the VAT that you have paid OUT back, but still pay the 20% YOU HAVE BEEN PAYED, the down side is if you are not registered, then you have to pay out the 20% (to suppliers) but can't claim it back but also you don't have to charge it.

That's just a rough guide to our VAT system, theres a whole lot more to it, hence if I can get paid in pound notes (dollar bills) then it gives me more options when I buy from a supplier  ;)

sofadoc

Quote from: Mojo on March 28, 2011, 03:26:06 pm
I was just wondering the other day if anyone here charges tax so thanks for asking the question.
What do you say gang ? Do you charge tax ?

No, I do NOT "charge" tax. Neither does June, Keith, Bobbin, or anyone else here.
We merely "collect" it. ;D
I had a customer complain to me once about the outrageous sales tax that I had "charged" her.
I explained to her, that her beef was not with me. She should bang on the door of the Governor's mansion, and demand satisfaction.
"Perfection is the greatest enemy of profitability" - Mark Cuban