Repair services in North Carolina may be subject to VAT. From 2014, service contracts (i.e. maintenance contracts, repair contracts or extended warranty contracts) will be subject to revenue tax when the contract is sold to a customer. In the absence of a contract (i.e. a single repair), it is important to see how repairs are billed. On a repair invoice, material and/or consumption costs are subject to VAT, while the cost of labour is not taxable. North Carolina also imposes a delivery fee (but no installation fees) related to the sale of personal physical goods to consumers. The capital of our country imposes many services and has different VAT rates depending on the type of service offered. For example, the normal VAT rate is 5.75%, but meals and alcohol are taxed at 10%, professional car parks are taxed at 18.5%, and parking in hotels is taxed at 14.5%.
In addition, accounting, catering, IT and other IT services, information services, dry cleaning, lawn maintenance, limousines and software are taxable in DC (at a rate of 5.75%). Unsurprisingly, lobbying services are exempt. The Virginia Department of Taxation is strict with respect to the documentation that is required to validate a non-taxed software sale. In particular, it requires that a sales invoice, contract or other sales contract explicitly certify the electronic supply of the software and that no tangible support has been or is made available to the customer for this software. [4] Without proper documentation of the uncontrollable nature of the sale, the department can (and does) assess the transaction tax on the buyer or seller, or perhaps both, when reviewing. „maintenance contract,” a contract in which a person imposes the maintenance or repair of an object of material personal property for a specified period of time, for a fee set at the conclusion of the contract. A maintenance contract can only provide for work, parts or parts and parts. 3. Partial and work contracts. Maintenance contracts, which include repairs, spare parts and repairs, are a combination of taxable sales and non-taxable services.
Since it is impossible to determine in advance the percentages of work and parts made available under the contract, the contract is considered a contract for half of the work and half-party, regardless of the percentages of the work and the parts actually provided under the contract. Therefore, half of the total burden of such a contract is taxable. Persons performing maintenance work in accordance with these contracts may purchase spare parts as part of a resale certificate, but are responsible for the tax on all goods purchased for personal use and consumption during repair or maintenance. 5. Extended warranty plans. With the exception of extensive warranty plans issued by licensed insurance companies, the tax applies to payment fees for extensive warranty plans providing repair and work parts. The application of the tax on extended warranty plans is calculated in this subsection, such as maintenance contracts. Extended warranty plans issued by an insurance company regulated by the Bureau of Insurance of the State Corporation Commission are insurance transactions and are not subject to tax.
