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Do House Cleaners Charge Sales Tax for Service? - YouTube
Channel: Angela Brown Cleaning
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[Music]
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do house cleaners charge
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tax for cleaning services it's a great
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question we're going to talk about it
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today
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hi there i'm angela brown and this is
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ask a house cleaner
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this is a show where you get to ask a
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house cleaning question and i get to
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help you find an
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answer now if you're new here yay super
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excited that you are we're here five
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days a week and we answer your house
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cleaning questions
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so subscribe if you have not already
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when you come back to youtube or you
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come back to your podcast feed we will
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be here waiting for you and we can carry
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on the conversation
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all right on to today's show we have a
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house cleaner that called into the show
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and she wanted to know
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is she supposed to charge tax from the
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customer
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for the cleaning services that she
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offers the good news is this
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in most cases the answer is no okay in
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most cases
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in america there are four states in
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which there is an exception
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and yes you must in fact charge sales
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tax
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all right so in order to find out go to
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your department of revenue for the state
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that you live in
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and find out what the rules and
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regulations are based on where you live
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now the rule of thumb across the board
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has been
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if your service is attached to a product
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the rules are different
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and this is where it gets convoluted and
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a little bit messy but see if you can
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stay with me here
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a service by itself like i come clean
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your house
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is not taxable as far as me charging you
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sales tax
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i'm the house cleaner you're the
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customer i would not charge you sales
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tax
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but if my service resulted in a product
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that you ended up keeping
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then yes i would so for example let's
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say that a dec
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guy comes out to repair a broken board
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in your deck
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okay so he would come out and he would
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perform that service and
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i would pay him for that service and
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then no i do not pay him
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the sales tax he does not charge me for
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sales tax all right the flip side of it
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is
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if his work on my deck resulted in a new
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product then yes i would
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so for example let's say that i did not
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have a deck but he came over to the
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house with a bunch of boards
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and he built me a deck okay the service
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for building the deck would be combined
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with the price
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of the package itself so i'd pay for the
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deck and his service
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right so because his service resulted in
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a new product i then pay him
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tax on the service he provides so like
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let's say that i bought a new air
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conditioning
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unit for my home the air conditioning
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unit does not put itself
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inside my home i have to have somebody
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come out and install that for me
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now they're not coming to my house
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except
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to install something which means because
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i bought the product
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it is required right it is required that
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i have someone install it otherwise my
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air conditioning unit does not work
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so when the repair guy comes to install
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my air conditioning unit
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i have to pay the tax on the air
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conditioning unit and i have to pay the
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tax on the installation
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because his being here resulted in a new
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product for my home
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does that kind of sort of make sense so
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as house cleaners we just go to people's
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houses
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we bring our own supplies we are doing a
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service we get in their home we leave
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their home they don't end up with
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anything more
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than we arrived with when we came to
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clean so for the most part no we do not
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charge
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sales tax but you need to find out
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because i don't want to stand here and
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say that the rules don't apply to you
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because all of the tax rules apply to
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all of
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us and if we get this wrong and i say
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it's better to be safe than sorry it's
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better to find out
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from your state that you don't have to
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pay and you don't have to charge
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than it is to be sorry because if you're
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audited and it's found out that your
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state
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does charge sales tax on services then
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you have to make up the difference
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and so going back to a customer for
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let's say that you were there bi-weekly
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so that's 26 cleanings a year
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to go back to a customer for 26
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cleanings and say hey here are the
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taxable amounts on all of your cleaning
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can you pay me that they're not gonna
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pay you
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okay so it would come out of your pocket
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as a business owner
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and so just a quick uh and i'm gonna
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leave links in the show notes
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but a quick verification on the state
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that you live in
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will help keep you in the clear so that
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you're not charging tax
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unnecessarily right so if if if your
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state says yes you do have to have
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taxes you got to charge taxes there's a
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form you have to fill
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out and you cannot collect tax from a
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customer unless you fill out that form
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so again i'm going to leave links in the
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show notes to where you can go to get
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more information on this
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for your state so i don't want you to be
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surprised and think like oh
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i'm you know exempt i don't have to pay
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taxes or i don't have to charge taxes
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from my services you might be very wrong
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and you might be mistaken and then
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it's going to be my fault because you're
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going to come back and blame me so i'm
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here to tell you find out the rules
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based on where you live
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and double check so that you're not in a
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state of surprise all right i hope that
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helps a little bit if it does please
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pass this on to a friend
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if we've earned your subscription please
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subscribe and until we meet again leave
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the world a cleaner place than when you
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found it
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you
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