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DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 789
Experience:  Years of Experience in Business & Personal Taxes
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I am starting a PC Repair Business in Ohio and I have a question

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I am starting a PC Repair Business in Ohio and I have a question about Sales Tax. I know I don't charge sales tax on any services I provide. My question is if a client needs a part to fix their computer and I purchase that part from either an online store or local store and pay sales tax, do I pass that sales tax charge on to my client? What if I want to mark up the cost of the item? Do I then charge sales tax, and what if when I purchase said part they don't charge me sales tax?

DanielleCPA :

Welcome and thanks for your question!

Customer:

Hello

DanielleCPA :

You are allowed to pass the sales tax that you paid on the parts purchase onto your customers.

Customer:

If I decided to mark up the cost of the parts, would I still just pass along the sales tax I paid, or charge sales tax on the new cost?

DanielleCPA :

You would still just pass along the sales tax paid. The parts are incidental to the cost of the service performed.

DanielleCPA :

If you aren't charging your customers sales tax and you purchase an item without paying sales tax, then you as the purchaser are responsible for self-assessing and paying in use tax on that item. You can still pass along the cost to your customers in the end.

Customer:

Great, thanks for your help in this matter, One quick addition, do different rules apply if I just stay as a sole prop or LLC?

DanielleCPA :

No the rules are the same regardless of what type of business entity you operate as.

Customer:

Great, thanks again DanielleCPA!

DanielleCPA :

You're welcome! Have a wonderful evening!

Customer:

You as well!

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