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Adding materials to invoice sheet

Discussion in 'Business Operations' started by alpine692003, Dec 20, 2004.

  1. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    Okay, Im not sure how you guys do this..

    ie) You go out and purchase $100 worth of materials which includes tax.

    Then you charge it back to the customer to make aprofit, ie) you charge her $150 for that same product that you got for $100 and you make $50..

    For labour you charged her $100..

    I'm just making these figures easy..

    So total bill comes out to $250.00

    $150 for materials
    $100 for labour

    We have 7% TAX on SERVICES and 7% on GOODS!

    Would I only add 7% to the labour since she already has taxed on the $100 materials?

    so $250 x .07% = $17.50 tax

    or do I charge her $100 x .07 = $7 tax only!
    so the total bill will be $250 + $7 = $257..

    You guys get me?
  2. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Since you are reselling the materials through her you should be charging 7% of the total (labor and materials). You should also give your sales tax ID number to any of your supplies since these kind of purchases are tax exemt for you.

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