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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I have a client who is subcontracted by a high end AV

Customer Question

I have a client who is subcontracted by a high end AV Retailer to do the installs
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: is my client subject to NYS Sales tax?
JA: Is there anything else the accountant should be aware of?
Customer: no
Submitted: 11 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 11 months ago.

Hi. Great Question. I would first check if the Retailer has a Form ST-120.1 Contractor Exempt Purchase Certificate

Expert:  ABC Accounting Group replied 11 months ago.

A contractor or subcontractor must charge sales tax to its customers if the work performed is repair, maintenance, or installation work.

Customer: replied 11 months ago.
but the subcontractor has no relationship with the customer, the retailer who sells high end TV, Sound Equip etc simply sends my client out to do the installs. The retailer pays my client. The retailer then charges the end customer
Expert:  ABC Accounting Group replied 11 months ago.

Hi. Thank you for the additional details. In that event, he does not charge the sales tax - the retailer would. Let me know if you have any questions.

Customer: replied 11 months ago.
Any pubs to support this?
Customer: replied 11 months ago.
I understand Capital Improvements being exempt but I'm looking for written guidance on the relationship not being with the customer, because some of the work is considered repairs
Customer: replied 11 months ago.
My client is facing issues simply because he's not an employee
Customer: replied 11 months ago.
He is simply hired by a company to do installs for that company's customers
Customer: replied 11 months ago.
I need to prove he is not subject to NYS Sales Tax
Expert:  ABC Accounting Group replied 11 months ago.

Hi. Sorry for the delay.

The subcontractor would only charge tax on the materials. not the labor. For a thorough description of the sales tax requirements of New York, go tohttps://books.google.com/books?id=Lq_G4xHyOwMC&printsec=frontcover&safe=on&hl=en#v=onepage&q=subcontractor&f=false<a id="Lq_G4xHyOwMC&printsec=frontcover#v=onepage&q&f=false" href="http://books.google.com/books?id=Lq_G4xHyOwMC&printsec=frontcover#v=onepage&q&f=false" target="_blank" rel="nofollow" "="" data-cke-saved-href="http://books.google.com/books?id=Lq_G4xHyOwMC&printsec=frontcover#v=onepage&q&f=false">

There is a search box - input "subcontractor".