Sales Tax on Shop Repairs and Comebacks?

[ARS]

How do you report and pay the state sales tax on repairs on your own shop's vehicles? We can zero out the labor part, but if we zero out the parts, we won't pay state sales tax on them because they won't show up when we do the report we use to do the State Sales Tax Return. Also, if you do warranty work, and the customer pays nothing but maybe you use some antifreeze or Freon that you don't charge them for, how do you pay sales tax on that? We are in IL if that makes any difference. Thank you so much for any help you can give me.

[ricmorin]

I wish I could help, but we have no sales tax in NH, and I'm not familiar with the specific laws in Illinois. Hopefully this post will bump the thread into someone's view.

[ARS]

Thank you for responding.... we are trying to figure out what to do here....

[Gerald Martin]

We are also in IL. I would suggest you invoice the parts (at cost, to shop vehicle) then set up a payment account called Internal - Shop or something like that, then use that payment account to mark the invoice paid. Then your sales tax will go on your normal report.

Gerald

[ARS]

Thank you - that might work.. Book keeper off this week... will try that when she gets back.

Thanks. ARS