Maintenance is planned, regular work on real estate that is not broken. Maintenance is necessary to keep the situation in order while avoiding any deterioration. The cost of maintaining real estate is not taxable. They must pay VAT on all taxable property purchased for the provision of tax-free real estate care services. In addition, you need a contract or other documentation to prove that services are planned and periodic. Spare parts or repairs installed are taxable. The maintenance of real estate can be carried out either under a separate or flat-rate contract (see guidelines under the new building tax). Pest control and destruction, collection and disposal of household and other garbage, child care and detention services (including sweeping or cleaning of parking lots), landscaping and lawn maintenance (including tree surgery and plant rental) and measurement are taxable real estate services. Many companies that offer customer support, installation or warranty services in conjunction with the sale of a good physical need to hire an army of accountants to determine what is taxable and what is tax-exempt.
If you sell service contracts separately or in parallel with the sale of goods in kind, you can collect VAT. Nexus`s determination is the first step towards VAT compliance. Texas offers broad sales and usage tax exemptions for manufacturers. Machines and equipment used in the production process can benefit from VAT exemptions in Texas. Repair parts and work on qualified machinery and appliances are also exempt. Consumables, including lubricants and chemicals consumed during the manufacturing process, are exempt if their use is necessary and essential to avoid the failure, decline or deterioration of exempt production facilities. Safety clothing or clothing used by workers in the manufacture or processing of personal material items is tax-exempt, provided that clothing or clothing is not sold to workers and that the manufacturing process is not possible without the use of such clothing or clothing. Utility companies that are consumed during production may also benefit from an exemption, but a valid use study by an engineer must document the percentage of utility companies consumed for exempt purposes on each mixed-use, taxable and tax-free meter. The Agile Consulting Group`s VAT advisors have a wealth of experience in the state of Texas and can ensure that taxpayers maximize the benefits of the Texas VAT exemptions for which they qualify. Most states now require some non-state sellers to register with the tax authorities and then collect and transfer VAT. It is difficult to know which states need which companies.
It depends on nexus – the link between a company and a state that triggers a VAT collection obligation. Under a separate contract, you give your suppliers resale certificates, instead of paying taxes on materials you include in the customer`s property and on certain services when the service charges are identified separately for the customer. These services are surveying, landscaping, final cleaning and safety systems integrated into the client`s reality. You then collect state VAT plus your client`s local tax on the amount you charge for materials and services. Your cost for materials should be at least as high as you paid for it.