General Contractor

Back to discussions
Expand all | Collapse all

Texas Sales & Use Tax on Separated Contract

  • 1.  Texas Sales & Use Tax on Separated Contract

    Posted 11-13-2013 17:12
    This message has been cross posted to the following Discussions: General Inquiries and General Contractor .
    -------------------------------------------
    We recently began work in Texas using a Cost Plus Fee contract with a GMAX.  Texas tax laws state that when using a "seperated contract" we should buy the materials tax exempt and then charge the customer tax on the price of the materials(not labor) when we invoice the customer.  My question is under this kind of contract are we expected to charge the customer tax on the cost of the materials plus the fee(on those materials) even when the fee is calculated on the total cost of the work?  Any help is appreciated.  

    -------------------------------------------
    Shane Hall MBA
    Controller
    Story Construction Co.
    Ames IA
    (515) 817-2607
    -------------------------------------------