Sales tax question Houston Texas

[scattermaster]

Hey guys.
I delivered some pieces to my customer a couple of days ago but have not sent them a bill because I'm not sure if I have to collect sales tax!
I have sent out emails to my customer's AP department and my CPA. I'm still waiting for a response, but maybe someone here knows?
Here's the scoop.
The order was for me to manufacture some adapters that my customer will use on their hydraulic test stand. They facilitate mounting different size pumps on the stand.
That said, the parts are not for resale, so should I collect sales tax ?
If so, do I collect it for the entire job or just the material?
OR, do they need to send me a tax exemption form or something like that?
The 1st time I did a job like this, I just did the order like I was modifying their existing adapters so I could avoid facing the tax question. I shouldn't just keep doing that...
What do you think?
thx,
Jim

 

[Ischgl99]

Hopefully your CPA can verify, but this is crunch time for CPAs, so it might take a while to get an answer, so I’ll try to point you in the right direction. According to this link, it looks like your machining services are fully taxable to an end user based on the statement under the taxable labor section.

Taxable Services

Information about taxability on taxable services.

comptroller.texas.gov

Under the FAQs on the website, it also states shipping is taxable if the goods or services are taxable, so you should be charging your customer sales tax on the entire amount unless they give you a resale certificate. That is the same in my home state of CT.

You should have charged sales tax to your first customer sale as well. I would add sales tax to the bill on the total invoiced amount unless you can find an exemption somewhere on the state site, your customer’s AP department will quickly let you know if you shouldn’t do that, but they might not call you back hoping you don’t add it and then you are stuck paying it and not them.

 

[benmychree]

I don't know about TX, but in CA it is just like the above post, here, the only thing not taxable is repair work. Until you get a seller's permit, likely you can't pay the tax dollars to the state, again, I don't know about TX, but here you need an appropriately zoned business address to get a seller's permit.