I am a contractor in Iowa. I am obviously charged sales tax when I purchase goods for a job. The customer is in turn charged this sales tax on the final invoice along with the rest of the material prices. Do I need to obtain a sales tax permit and file it quarterly with my other quarterly taxes?
Uh, what have you been doing with the sales tax money you collect from your customers? Just keeping it?
YES you need to get a retail sales tax permit, to allow you to collect sales tax which you’ll then remit to the state, and to allow you to buy goods for resale without paying sales tax when you buy them.
Dear H: Look at your states dept of taxation for the sales tax rules. You will be required to submit all sales tax collected and you will be exempt from sales tax when you purchase materials. If your local city has a sales tax, you will need to comply with the city law also.
Apply for your sales tax license.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent.
as a contractor do bill your customers for taxable items? if so you need to register and get a sales tax ID # from your state sales tax agency
and when you buy goods for your job you will give the vendor your sales tax ID # which they will record and retain for future purchases