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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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Sales Tax in Pennsylvania on Labor

Resolved Question:

My husband started his business in January 2005 in Pennsylvania.    He installs Kitchen and bathroom cabinets and does some trim work.    Do we have to pay sales tax on labor?        He also does sub work for another company.   Would we also have to collect sales tax for those jobs or would the company be in charge of that?

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Submitted: 11 years ago.
Category: Tax
Expert:  Lev replied 11 years ago.

You may find helpfull PA DOR sales Tax information -

The services your husband is doing are subject to sales tax.

Let me know if any details are needed.

Customer: replied 11 years ago.
Reply to Lev's Post: That also includes sub contractor jobs?   Since the company he does the job for probably deducted sales tax.   That company does not give us sales tax with the payment of the job.
Expert:  Lev replied 11 years ago.

The sales and use tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania.

As a subcontractor, he may or may not involve in the retail sale - this will depend on the specific contract. If contract states that the general contractor is responsible for collecting sales taxes, than he doen't need to do so.

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