1. Ask the Expert: Fertilization Strategies for Success: Dec. 12, 2017
    Learn how to do more with less when it comes to your fertilization services. Join the live Ask the Expert event hosted by Koch Turf & Ornamental: Dec. 12, 12-2 p.m. ET in the Fertilizer Application forum .

Someone didn't pay their sales tax

Discussion in 'Starting a Lawn Care Business' started by swbluto, Aug 11, 2011.

  1. So, I sent an invoice to a "rental customer" and they paid for it by check, but didn't pay for the sales tax that was due. The services were 50 dollars, the tax was 4.35, and they sent 50.

    What would you do if someone did this? I'm pretty sure I'm going to have to eat this sales tax when taxes are due and I'm not entirely sure if that's something I want to do, but yet I don't want to scare off the customer with a demanding "Pay your taxes or we'll stop servicing your lawn!" message. Truth be told, I'd be willing to eat the taxes on her lawn since it's an easy lawn, but what *should* I do?
  2. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 14,348

    Next invoice add it as a past due amount with a nice note. Otherwise just eat the 4.35.:usflag:
  3. Wiedmann

    Wiedmann LawnSite Member
    Messages: 138

    happen to me recently with a realtor/ homebuilder. He made the checks out to me on the spot after he had forgotten to pay. I decided since I hope to build a good relationship with him that I would "eat" the sales tax this one time. Does make me somewhat upset that I have to pay it but thats just part of doing business I suppose. I love it when I give a new customer a bid and they argue with me about them not having to pay the sales tax... like that i should just cover it.. yah, ill cover it with a higher price to do your yard..
  4. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Happens to me on occasion, in fact just this month. If it's a regular customer and I figure they just looked at the wrong line on the invoice, I'll usually just edit the invoice so that with tax it comes out to what they paid, assuming the invoice isn't more than a couple hundred bucks. If it's a new customer or a significant amount I send a statement with the amount due. I get customers telling me all the time that they don't understand why I'm charging them sales tax because their other guy never did. I tell them that I don't charge sales tax, I just collect it for the state. In my state they come down on you really hard for failure to collect/pay sales tax....really hard!!

    DIXIECONTRACTING LawnSite Senior Member
    from NY
    Messages: 283

    I would call them and say by law I have to charge you tax.
  6. MowHouston

    MowHouston LawnSite Bronze Member
    Messages: 1,012

    Itemize your invoices to show the subtotal, tax, then total?
  7. lukemelo216

    lukemelo216 LawnSite Bronze Member
    from ...
    Messages: 1,267

    yeah just tell them that by law you are required to collect sales tax from every customer. And leave them a note stating that if they are exempt from paying sales tax that you will need documentation on file. Simple as that
  8. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    Yes You have to REINVOICE them again.... IT's A PITA but it happened to me several tiems
  9. justanotherlawnguy

    justanotherlawnguy LawnSite Bronze Member
    Messages: 1,282

    Sales tax on lawn service? What a major pita
    Posted via Mobile Device
  10. A Leaf Above

    A Leaf Above LawnSite Member
    Messages: 223

    Just tell them you wont add sales tax to their invoice next time BUT they have to pay you cash instead of check ....

Share This Page