The amount charged to the property owner by the landscaper is not a taxable receipt. Tools and equipment purchased or rented by a landscaper, contractor, or subcontractor are subject to Sales Tax even if the equipment is used on a job for an exempt organization.
Landscaping providers must charge sales tax on landscaping services [KRS 139.200]; however, they do not charge sales tax when acting as a construction contractor or subcontractor by erecting, remodeling, or repairing any structure or improvement to real estate, e.g., a pond, patio, retaining wall, stone fence, or irrigation system.
Pricing Your Subcontractors
NSCC-009 | Non-US Tax Witholding
Construction Industry and Texas Taxes Sales, Franchise, Motor Fuels, Audit Issues
Frequently Asked Questions
Do subcontractors charge sales tax in Texas?
When you repair or remodel residential property, you are a contractor. As a contractor, you may have a lump-sum contract (one price for the entire job). ... You then collect state sales tax, plus any local tax, from your customer on the amount you charge for the materials and those services.
Do landscapers charge sales tax in CT?
Landscaping services rendered to new construction, residential real estate, and industrial, commercial or income-producing property are subject to sales and use tax. Excavating and rough grading services rendered to new construction are not taxable.
Can a landscaper collect sales tax on a subcontractor?
If a landscaper hires a subcontractor to perform taxable work as part of a project, the landscaper can use Form ST-120.1 to purchase the subcontractor’s services for resale. The landscaper will collect sales tax on its total charge to the customer.
Can a general contractor collect sales tax from a subcontractor?
If a general contractor hires a subcontractor to perform taxable work as part of a project, the general contractor can use Form ST-120.1to purchase the subcontractor’s services for resale. The general contractor will collect sales tax on its total charge to the customer.
Do you have to pay sales tax on construction work?
It is support that the work is subject to the Real Property Contracts rules and no sales tax should be charged on the labor involved. It should be completed for single use or blanket use. The general contractor does not need to collect the form from the person hiring him/her to do the work. Landscapers and painters do not have to collect the form.