[FirstEliminator]

If I am the end user of an item, like tools, then I pay the tax. Here is an example. If you buy a die grinder with a cut off wheel to use for work performed on a customer's car, I would pay tax on the die grinder because am keeping it as the end user. The cut off wheel is considered a consumable used in the course of the work. I don't pay tax on that cut off wheel and the customer doesn't receive the spent wheel. I don't know the exact terminology. Same thing with welding rod or shielding gas. I'm not selling filler rod, but it is used in the process of assembly, manufacture or repair of a greater item or service that is being sold. This is Massachusetts, there is no tax on labor, only parts to the end user. Taxes definitely differ from state to state. All in all, if I don't have to pay it, why would I throw money away?
The comment about eBay was just a comparison of airgas being a pain. If they can't get things situated, then I will shop somewhere else. The annoying thing they did was ship part of the order to my shop and two items to the local airgas facility. Do you think the guys at the local store would say anything? Two weeks later when ordering something else he finally mentions it and says I don't know why they shipped it here, do you still want it?
While I don't need it because I was able to make something else work, it would have been nice to know when it came in. Thankfully I don't make a living on welding. Airgas is the local place and their track record in this short time is not very reliable.
Anyway, everything is set up with the Tig welder.

Thanks,
Mark

[BillE.Dee]

I look at it this way...ALL of this tax crap is just another way for the government to steal more money from the working man. Not too much different from air gas or even praxair "trying" to get their hands on money that I don't believe is turned in to the government as "required". I bought a pair of gloves from air gas ... got wacked for Hazardous...wtf!! Arguing with someone who is only a "salesman" is like talking to the steel column holding the roof up. I'm supposing that those "costs" are to be figured in as operating expenses. BLAME THE GREEDY GOVERNMENT who is real good at pissing away our money. I can't wait til all of this virus is over to see what they are going to tax next.

[LtBadd]

but you need to pay sales tax when you sell it. well the customer will, I just collect it.

I think my comments above were slightly confusing as I referred to buying product you would use for your business. Sorry if I confused anyone.

Sorry to the OP to get OT

[TraditionalToolworks]

If I am the end user of an item, like tools, then I pay the tax. Here is an example. If you buy a die grinder with a cut off wheel to use for work performed on a customer's car, I would pay tax on the die grinder because am keeping it as the end user. The cut off wheel is considered a consumable used in the course of the work. I don't pay tax on that cut off wheel and the customer doesn't receive the spent wheel.

Mark,

Not to belabor on this issue, but I believe you're wrong here, and let me explain. (I'll try to be brief as I'm a wordy mofo )

In the case of the die grinder, you're correct, that's the use tax I was referring to. In the case of the cut off wheel I believe you are wrong. This is something that you should be billing the customer for and charging sales tax on it, which you're required to pass along to the State, AFAIK. Think of this similar to when someone goes in and gets a tune-up on their car. They are charged labor which is by the hour and not taxed, but the parts used and listed separately as parts and you are taxed on them, at least we are in CA, and I would be really surprised if MA worked differently. I originally referred to buying product for your business, but those products need to be passed along to your customer or a use tax paid, if you buy them on your resale number you are still required to pay the tax at some point. This is a lesson not to find out the hard way, as the State will most likely charge you the taxes, plus a late fee for not paying them on time, and possibly a penalty. You might want to check with the MA Tax Board to find out. I would ask them in this way, "I have a customer that told me I should not be charging him tax on a consumable tool I used during the work I performed, is that true?" (or something to that effect) The last thing you want is an audit. And BTW, this is kind of what Richard eluded to himself.

Sorry to the OP to get OT

No worries, these messages are free, but I have a question in regard to welding which is why I pointed out the above to Mark. For a welding service you use gas/filler/other-consumables/etc...do welders charge for gas and consumables? If so, wouldn't those be taxed just like any other product to the customer? I understand that welding is labor, but I *think* I've heard of welders charging for them and if so, it seems they would be required to tax them and pay the State. Maybe I'm wrong. The other way would be that the cost of the consumables get written off on your taxes. How does that work for you welders?

In my case as a consultant I can write of purchases of computer equipment, which includes the tax. I can also write off vehicles, travel expenses and entertainment. Don't get too excited, it's very hard to do these days as you need to be entirely independent and most places want to have consultants on W2. You can only do this if you're working 1099 or Corp-to-Corp, which is not entirely gone, but getting pretty rare. I have written off things like my flat bed and even a couple years ago I was working on 1099 and wrote off a '46 Chevy pickup...them are the rules...I play by them when I can.

[LtBadd]

Alan, all my work is business to business, so my customers don't pay sales tax to me as they are resellers of the end product themselves, and I keep their resale certificate on file.

If I made art and sold to the end user then I would be required to collect sales tax.

[Spartan]

I guess I just handle it differently. I provide a "service" for all of my welding, and all of my invoices are a labor rate, either hourly or quantity based, and each line item is marked as "Labor - Fitting", "Labor - Welding", "Labor - Procuring", "Labor - Machining", "Labor - Fabricating", etc.

I pay sales tax on almost everything I purchase for the jobs, but pass all of that cost directly on to the customers either through direct receipts for materials included on the invoice (sometimes plus overhead), and also by adding a fixed amount to my total labor rates (either hourly or quantity-based) that the customer doesn't actually see (they just see the total labor rate, not how I arrive at it) to cover the average total costs of my consumables and other overhead.

Everything I purchase gets claimed as business expenses for the tax year, but of course all of my invoices are taxed, so it mostly evens out.

So in short, I do not sell any goods, items, or parts to customers, I only sell my services. But maybe I'm doing it wrong!

Edit: Yeah, I just looked it up and I'm probably doing it wrong for one of the states I operate in...I'm used to billing for "consulting" labor on the primary side of my business. Luckily, the welding/fab side of the business is a relatively new addition, so shouldn't take too much of a hit. I'll be sure to get sales tax added to weld/fab jobs as applicable. Glad I read this thread!!

[Poland308]

Let’s be honest, if your a business and your not figuring in the cost of your consumables as a part of your taxable labor rate then your not really running a business. Your running a charity.

[TraditionalToolworks]

Alan, all my work is business to business, so my customers don't pay sales tax to me as they are resellers of the end product themselves, and I keep their resale certificate on file.

Completely legal, IMO. You pay the tax when you buy the consumables as you have stated above.

I pay sales tax on almost everything I purchase for the jobs, but pass all of that cost directly on to the customers either through direct receipts for materials included on the invoice (sometimes plus overhead), and also by adding a fixed amount to my total labor rates (either hourly or quantity-based) that the customer doesn't actually see (they just see the total labor rate, not how I arrive at it) to cover the average total costs of my consumables and other overhead.

That's totally legal, the taxes are being paid up front when you purchase the consumables. Even if you don't pass it along to the customer, it's still legal because you've paid the taxes.

What is not legal is to use a resale number and then not pay the taxes, either in use tax or billing the customer. It is entirely legal to charge whatever rate you want for your labor and not charge for the consumables you use, AFAIK.

I also agree with what Josh said. I'm not trying to run anyone's business, it's actually none of my own. I was only commenting on what others have said. Be careful what you tell people, especially on the Internet as it could be there for a long time. No telling who will see it.