Is There Sale Tax On Labor In The State Of Florida?

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Matt Domm Profile
Matt Domm answered
According to myflorida.com, which lists information from the Florida Department of Revenue the answer is in how you interpret the facts. The Sales Tax facts state each sale, storage, admission charge, or rental is taxable unless stated as exempt. Sales tax is added to prices on services or goods. This tax is collected from the consumer at time of sale.
Under the section ‘who must pay tax’ it states that a business in Florida should check out with the state if their activity or product may be subject to sales or use tax. If your business is subject to this then you will need to register to collect the sales tax or pay use tax. There is a partial list on the website of what is included in the sales tax category. The last item on this partial list states taxable services such as investigative, non-residential pest control and non-residential cleaning services are applicable for sales tax.
If you are unsure after this answer of whether sales tax is on labour you should contact the local service centre or taxpayer services. From what I can derive from this information the sales tax is not on "labour” but on the service you provide. In other words if you have an investigative company you apply sales tax to the bill for the "work” you do in tracking down whatever you were asked to investigate including taxing the fees you may have had to pay in order to gain certain information. It is not actually on the labour hours you put in for the work, just the services you rendered for it. In the automotive industry you pay sales tax on the parts placed on the vehicle but not for the actual labour according to one expert in the state of Florida.
Anonymous Profile
Anonymous answered
It depends if the invoice had any parts/equip on it. If hours were used to install these parts/equip, then sales tax is applicable.  If there were no parts/equip, just straight hours then there should be no sales tax.  I would contact your local Dept of Revenue office for further explanation.
Anonymous Profile
Anonymous answered
We owned a business that installs electronic equipment, such as stereo and tv, we paid sales tax for our equipments and we charge labor per hrs. Do we have to paid sales tax on product and labor or just labor. Thank you
Anonymous Profile
Anonymous answered
If I am performing labor only for a client do I charge them sales tax

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