Parts Repair

Does a service repair technician need to charge VA sales tax on parts for resale?

A business owner in VA services and repairs restaurant equipment and needs to order parts sometimes to repair the equipment. Can the service guy mark up the part and add this cost to the service invoice without charging VA sales tax? They are not a contractor, just a repair/service person and the part is being used to repair the equip; there is a separate charge for labor and for parts. Also, should the service guy pay sales tax when purchasing the parts at wholesale from a dealer?

I don't know about VA, but in SC, the answer to one of your questions would be 'yes' and the other 'no'. Tax only has to be paid once, either when the service man buys it, or when the service man resells it. But for the repairman to avoid the tax initially, he must have a retail sales lisence. Check with your state's Department of Revenue.

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