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Another term for a contract price is a contract sum. The contract price often includes a down payment, possibly several continuing payments, and will end with the final amount that is paid in order to close the contract. Contracts are often used for the following: Leasing.

Contractors are required to pay RST on purchases, rentals and leases of equipment; repairs to equipment; and supplies they use in performing work on real property. See page 4 of this bulletin for tax payment on equipment temporarily brought into Manitoba by non-resident contractors.

Generally, contractors and subcontractors are users and consumers and must pay tax on the purchase price of materials, supplies, and taxable services that are used in the performance of their contract to make improvements to realty.

It should be stated in an amendment to the standard CCDC - 4 document, that the Contract Price does not include Value Added Taxes, and that the total amount that the Owner has to pay to the Contractor is made up of both the Contract Price and the Value Added Taxes.

GST and HST charges are made on both the labour and the cost of materials. Many contractors choose to charge the GST or HST on the cost of the whole project. Others will break down their invoice to show the cost of labour and materials, especially if the client is paying the for the materials out of their own pocket.

A contractor engaged in services to real property is required to collect PST on the total charge to the customer for the services, including all related charges and fees such as charges for labour, materials, transportation, insurance, service fees, and any tax, levy or duty, other than the GST.

If you don't have to charge GST, do you have to charge PST? Yes, if your business resides in a province that has a provincial sales tax, or retail sales tax (RST) as it is also called, you will have to charge, collect and remit PST unless you are selling a product or service that is PST exempt, in most cases.

Contractors and home remodelers do not collect sales tax on their work. They do however, pay sales tax on the supplies they purchase. Available on the Ohio Department of Taxation's website is the form STEC CC, which is the construction contract exemption certificate.

There actually is a provision in Florida sales tax statutes that allows a contractor to charge sales tax on materials, but not on labor, even for real property improvement contacts.

The GST applies to most goods and services made in Canada; however, certain exceptions may apply. The PST is a retail sales tax that is payable when a taxable good or service is acquired for personal or business use, unless a specific exemption applies.