Charges for maintenance of real property are not taxable. You must pay sales tax on all taxable items bought for use in providing nontaxable real property maintenance service. In addition, you must have a contract or other documentation to prove that the services are scheduled and periodic.
What services are not taxed in Texas?
Services. Texas excludes certain services from taxation. These include professional services, such as those offered by physicians, attorneys, accountants, barbers and hairdressers, interior designers, and automobile repair services.
Is equipment maintenance taxable in Texas?
Sales or use tax is due from the purchaser on the entire charge for a service to repair, remodel, maintain, or restore tangible personal property, including any separately stated charge for materials, parts, labor, consumable supplies, or equipment.
Is mechanic work taxable in Texas?
There is no sales tax on the labor to repair to a motor vehicle. For example, the labor to repair or replace a tire, battery, muffler or shock absorber is not subject to sales tax.
Is computer maintenance taxable in Texas?
Charges for computer program repair, maintenance, or restoration by a person who sold the computer program are taxable. Computer program repair, maintenance, or restoration includes error correction, technical fixes, and technical support, whether provided over the Internet or over the phone.
What is exempt from sales tax in Texas?
Common Texas sales tax exemptions include those for necessities of life, including most food and health-related items. In addition, goods for resale, such as wholesale items, are exempt from sales tax, as well as newspapers, containers, previously taxed items, and certain goods used for manufacturing.
What food is not taxed in Texas?
For example, flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries (food products) are not subject to Texas sales and use tax. Tax is due, however, on non-food items such as paper, pet, beauty and hygiene products; clothing; books; and certain edible items.
Do you have to pay sales tax on services in Texas?
Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services.
Do you charge sales tax on new construction in Texas?
You don’t charge your customer tax. … You then collect state sales tax, plus any local tax, from your customer on the amount you charge for the materials and those services. Your charge for the materials must be at least as much as you paid for them. The construction labor is not taxable.
Do you charge sales tax on rental equipment in Texas?
Texas generally does charge sales tax on the rental and lease of tangible personal property unless a specific exemption applies.
Do you charge taxes on services?
California law restricts the application of sales or use tax to transfers or consumption of tangible personal property or physical property other than real estate. Unlike many other states, California does not tax services unless they are an integral part of a taxable transfer of property.
What is taxable sales in Texas?
This includes purchases from Texas or out-of-state sellers, or items taken out of inventory for use, items given away, and items purchased for an exempt use but actually used in a taxable manner. Taxable purchases do not include inventory items being held exclusively for resale.
Can a repair shop charge storage fees in Texas?
Yes. A mechanic has the legal right to keep your car until you pay for the repairs and to charge you for storage while waiting for payment.