Sales Tax

Discussion in 'Business Operations' started by Terra Bella, Jun 26, 2004.

  1. Terra Bella

    Terra Bella LawnSite Member
    Posts: 9

    I am new to the business. My husband and a friend have started an landscaping business, and are quite successful so far. Our partner was in a previous partnership and included sales tax in his bid but did not show it on his invoices. I talked to a tax consultant and they said the best thing for everyone was to show sales tax on the invoices. So on the accounts that we currently have I back sales tax out of the quote and then show sales tax on the invoice. I am wondering what the best way to quote is. For example do you quote 30.00 and sales tax is included in that, or do you quote 30.00 plus tax. It just seems like every landscaping invoice I have ever seen does not show sales tax on it. But the Tax consultant says that landscaper get audited on an average of every two years, we are the most targeted industry. Please help me figure out the best and simplest way.
  2. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    All my quotes indicate the prices of the services without sales tax but very clearly states applicaple sales tax are not included in quoted price.
    On our invoices it shows the price of the service, sales tax and the total on seperate lines.
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Terra Bella,

    Each state may differ but here is a quote from the state of Virginia's website "The sales tax regulations require that dealers separately state the total tax on an invoice or receipt"

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