Cost Plus Contract And Gst In Houston
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Grocery stores and convenience stores not only sell food products, they also sell a wide variety of other items and services – some of them taxable, and others nontaxable. For example, flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries (food products) are not subject to Texas sales and use tax.
Contractor services performed on residential real property are not usually subject to sales tax. The Texas Administrative Code Section 3.291(a)(12) defines residential real property to include the following: Family dwellings. Housing complexes.
If your customer provides the materials, then you are providing labor only. You're not responsible for tax on the materials. Under a lump-sum contract, you do not collect sales tax on materials or labor from your customer. You are the consumer of all items purchased to perform the work.
Some customers are exempt from paying sales tax under Texas law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
(C) A contract that includes maintenance and repair or restoration will be taxable in total if the charges for repairs and/or restoration services exceed 5.0% of the total charges and are not separately identified to the customer in the contract or billing.
Repair, Restore, or Remodel Services: These are taxable services in Texas under Rule 3.357(b)(2) and contractors must obtain a sales tax permit to collect owed tax from customers and remit it to the state.
