Should an automotive repair shop charge sales tax to their customers ?

Dec 12 2011

Question by shamikkan: Should an automotive repair shop charge sales tax to their customers ?
In Texas an automotive repair shop that sales parts in the repair of a vehicle, not for over the counter sales but only sales items to be used by that repair shop in their day to day services offered to customers ?

Best answer:

Answer by Gem
The sales tax laws force them to charge (or pay) the sales tax. So, yes, they should charge for it.

Add your own answer in the comments!

7 responses so far

  • kate says:

    Doesn’t matter if it’s over the counter or the repair shop .
    If the state says tax parts , they better tax parts .
    And if the state says tax labor , they better do that too .
    What ever the state rules are ,
    Do it or loose your business license .

    >

  • wartz says:

    They should follow their state’s laws. This sounds reasonable to me and is what happens in my state.

  • STEVEN F says:

    Texas lists “Personal property maintenance” as a taxable service. Most states consider an automobile to be personal property.

  • Goodhead says:

    You must collect sales tax for any parts you install or sell to your customers. for your quarterly state sales tax filling you must pay the sales tax dollars to the state.

  • basketcase88 says:

    If it’s the state law, they have to charge (their customers) and pay (the state) sales tax on goods they sell. That would include goods used to repair an automobile.

  • Michael M says:

    yes if the state law says to of course

  • bostonianinmo says:

    They must pay the sales tax on the parts sales. They are not actually required to collect it from their customers though virtually all businesses do.

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