tax question

Discussion in 'Business Operations' started by keepoffthegrass, Mar 19, 2007.

  1. keepoffthegrass

    keepoffthegrass LawnSite Member
    from Ontario
    Posts: 212

    I was wondering, when billing a customer and calculating GST, lets say on a yard of mulch for example. How would you calculate GST if you charge by the yard installed with the labour and material cost combined.
     
  2. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

  3. keepoffthegrass

    keepoffthegrass LawnSite Member
    from Ontario
    Posts: 212

    Government sales tax(GST 7%) its candian so a lot of people on here may not now what it is.

    I was just wondering how you would charge tax(GST) on a Yard Of Mulch installed for 70$. And it would typically cost me 25$ a yard..
     
  4. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    if there is no tax on labor then just charge it on the RETAIL cost of the mulch.
     
  5. keepoffthegrass

    keepoffthegrass LawnSite Member
    from Ontario
    Posts: 212

    Sorry, I was mistaken. I meant "goods & service tax" we have to collect 7% on all goods and service we perform. Its different in each province. I was just wondering if we charge it on the full (lets say) $75/yard or just the labour . But now that i think of it, since we the contractor pay 7% when purchasing the material it makes sense to charge the customer 7% , correct?
     

Share This Page