Do you tax your customers?

Donte55

New member
So im just starting out my official start date will be April 1. I have my 3 page proposal pretty much ready to go. I just want to know if most on here charge sales tax to their customers. Same thing with square card reader. Are you adding on the 2.75% if they swipe or do you just eat the cost. I read on here a while ago that some do and some dont just want to see what people are doing now.

As it stands right now i have a spot where i have the sub total , then tax then the final total (if that makes sense). So a 300 dollar job + 24.75 tax = final total.

Even though a lot of big business do this I feel like its nickel and dimming the customers.
 
So im just starting out my official start date will be April 1. I have my 3 page proposal pretty much ready to go. I just want to know if most on here charge sales tax to their customers. Same thing with square card reader. Are you adding on the 2.75% if they swipe or do you just eat the cost. I read on here a while ago that some do and some dont just want to see what people are doing now.

As it stands right now i have a spot where i have the sub total , then tax then the final total (if that makes sense). So a 300 dollar job + 24.75 tax = final total.

Even though a lot of big business do this I feel like its nickel and dimming the customers.

Does your state require it? (Sales tax)

Check with your accountant
 
A tax is something that is required by a government source at some level. You are talking about an extra charge based on the customer using a CC. If you tell the customer in advance about the charge and both parties are clear from the beginning go for it. Dropping the charge on the invoice without prior notice will probably have some questions/complaints and a good possibility of the customer looking else where next time as they feel cheated by the extra charge.

Also a $300 total is only $8.25 in square fee's charged at 2.75% to you the contractor. $8.25 is really not much to get paid on the spot and to have the money in my account the next day. A bounced cheque will cost you a lot more then that, and waiting 30 days for money at this early stage of your business is not ideal.
 
Im going to have to go ahead and call an accountant. Ive been reading and some "legal" help sights say i have to charge sales tax while others say i dont. I also know depending on what your washing that could also affect it.
With square i figure ill just eat the cost and charge accordingly.

Legal stuff is always fun.

Thanks for the replies.
 
Im going to have to go ahead and call an accountant. Ive been reading and some "legal" help sights say i have to charge sales tax while others say i dont. I also know depending on what your washing that could also affect it.
With square i figure ill just eat the cost and charge accordingly.

Legal stuff is always fun.

Thanks for the replies.

It depends on your states requirements- NJ Requires it, some dont

I pay it quarterly- if i didnt they would eventually audit me for it and crush me- thats how it goes
 
Here in New Zealand we add 15 % GST, Goods and Services Tax, or better known as Government Sanctioned Theft.
It totally sucks to have to add this on at the bottom of the invoice because it make the job look so much dearer.
We pay GST on everything here in NZ. We even pay GST on TAX. The price of fuel here in NZ is loaded with this tax and that tax before it reaches the pumps and then on top of those taxes we pay GST. Our government double a treble dips.
The other thing with the GST is we, as contractors and of course anyone else that is GST registered, have to collect this GST, do all of the administering of it at our own expense and if you don't play your role as a Tax collector you get prosecuted for the privilege.
 
In Iowa we charge sales tax for all commercial services except new construction or renovations, but only residential services that are specified by the state. Power washing is not but painting (read deck staining) is. We do pass a 3% processing fee onto customers who insist on paying with CC. In 8 years I have seen one or two checks bounce. Far, far less than the amount we'd pay in cc fees. I raise prices for other things but no need to charge everyone for a service they don't use. 90% write us a check. I am sure that if I didn't pass the cc fee on and asked everyone for a credit card 90% would do that. More and more people are asking to pay with CC all the time. I wish tools like Dwolla were more popular...let's you instantly pay via bank account transfer through email without any fees for either party. Like paypal but without the fees.
 
Doug is right. It is not a "charge"....we are just lucky enough to gather it up from our customers and send it off to the state. Yes, in Texas it is applicable to services unless there is new construction or some other exempt status (Church, non-profit). Honestly, it puts us honest folks (5%) at a disadvantage against those who don't collect it (95%) and send it in because it results in either a higher price or a reduced profit but it is what it is....

Daniel Simmons
Pressure Washing America, LLC
 
No....we do not charge tax.....but we do collect it and send on to the State as required by Texas Law
Awesome perspective!

Sent from my SM-N920P using Tapatalk
 
Doug is right. It is not a "charge"....we are just lucky enough to gather it up from our customers and send it off to the state. Yes, in Texas it is applicable to services unless there is new construction or some other exempt status (Church, non-profit). Honestly, it puts us honest folks (5%) at a disadvantage against those who don't collect it (95%) and send it in because it results in either a higher price or a reduced profit but it is what it is....

Daniel Simmons
Pressure Washing America, LLC

I have only lost 2 customers for having to collect the tax. I clearly state the tax in the bid and most have no problem with it.
 
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