Adding materials to invoice sheet

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

  1. alpine692003

    alpine692003 LawnSite Bronze Member
    Messages: 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
    Messages: 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.

Share This Page