# Do you charge sales tax for embroidery only?



## Louie2010 (Feb 26, 2010)

Do you charge any sales tax for embroidery on customer supplied goods? Is it just all considered labor and no tax charged?

What does everyone else do?

Thanks


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## contractprinter (Jan 5, 2006)

you could call it a service and not charge tax, but you possibly need to pay the sales tax on the thread you buy. sales tax should be paid by the end user of the product.


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## thutch15 (Sep 8, 2008)

You need to check state requirements...some states require sales tax on services.


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## myfinishingtouch (Nov 21, 2009)

We do in Louisiana...but I just assumed we are supposed to charge the sales tax when embroidering on customer supplied goods. If your business supplies the garment would you just charge sales tax on the shirt and not the embroidery or charge sales tax on the whole thing?


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## SunEmbroidery (Oct 18, 2007)

The laws very from state to state and local laws may also apply. Check with your state.


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## AndTees (Jul 6, 2009)

myfinishingtouch said:


> We do in Louisiana...but I just assumed we are supposed to charge the sales tax when embroidering on customer supplied goods. If your business supplies the garment would you just charge sales tax on the shirt and not the embroidery or charge sales tax on the whole thing?


That's the logic I follow too.


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## BML Builder (Jul 8, 2008)

You have to check with the requirements of your state. In Arkansas they do not require that embroidery services to be taxed. You do have to pay taxes on your supplies, but if the customer provides the product to be embroidered, it is considered just a service and it not taxable. If you provide the product then you are selling a product and therefore it is taxable. On our tax forms you have to provide for all purchases that you are to pay taxes on and then all of the products that you are selling. If you paid taxes on the supplies you do not have to pay taxes on the product made from them. I guess Arkansas figures it like you would not charge sales tax on the labor.


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## irish (Dec 13, 2008)

Iowa did not used to have sales tax on services and a couple of years ago they decided they needed more $$ and have a sales tax on services. Embroidery only was a service like accounting is a service. Both have to charge sales tax now.

Check your state - every state is different.


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## myfinishingtouch (Nov 21, 2009)

I just called our local parish tax assessor's office and they said we need to charge sales tax on our embroidery of customer supplied goods. Doesn't surprise me too much for Louisiana to take this position.
Dave


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## thutch15 (Sep 8, 2008)

myfinishingtouch said:


> I just called our local parish tax assessor's office and they said we need to charge sales tax on our embroidery of customer supplied goods. Doesn't surprise me too much for Louisiana to take this position.
> Dave



I guess I would have to agree with them (though I am 100% against taxing work...that should be rewarded not punished???) 

The customer is leaving with something and that is stitches. I picture a "service" as being something that is not physical. For example getting a massage or paying for accounting advise.


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## joeshaul (Mar 1, 2008)

Agree with all the other posters, check your state's laws regarding sales and services. 

Utah does not charge for service only, however I still charge sales tax when customer's supply their own material. I'm providing a service, but I am also using my own materials for that service (ink if printing, thread if embroidery), which I have not paid sales tax on. Better to be safe than sorry if Gov were to get uptight about it!


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