i was talking to a guy @ work today (also panning a wedding) who said that it's illegal in NYS to charge sales tax on a service. i'm left questioning why i'm paying sales tax on my service charge for the RH, which i know is how most halls do it. anyone know anything about this???
MayWeddingGrl
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Re: taxing services
I have no idea, but if someone has a good reason, I would love to know too!!
PegaLega
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Re: taxing services
I think the service charge is added after tax-not positive tho
ETA: I also think my contract said 20% gratuity not service charge
PreshusSmurf
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Re: taxing services
I don't believe you are going to be able to get out of this with the RH ... there is something in the way they word it that allows them to do this.
BUT your friend is correct ... when ONLY a service is being provided ... and there is no TANGIBLE product, tax should not be charged.
An example of this is your DJ or Band.
Also, keep in mind, that the vendors don't CHARGE the tax ... they don't get to keep that money ... it goes to the government. They are only a tax collecting agent for the government.
beram63
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Re: taxing services
Posted by PreshusSmurf
I don't believe you are going to be able to get out of this with the RH ... there is something in the way they word it that allows them to do this.
BUT your friend is correct ... when ONLY a service is being provided ... and there is no TANGIBLE product, tax should not be charged.
An example of this is your DJ or Band.
Also, keep in mind, that the vendors don't CHARGE the tax ... they don't get to keep that money ... it goes to the government. They are only a tax collecting agent for the government.
i'm not really trying to get out of it--just trying to understand how it works. i figure there must be some detail in the law that explains why they're taxing the gratuity/service charge.
mjay
Posted:
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Re: taxing services
Thats why the DJ vendors should not charge tax.. so if any DJ vendors charged you ladies tax question it.. or how about the ones who say they will waive it just for you..come one guy its illegal..lol
