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Sales tax on glitter tattoos?

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Sales tax on glitter tattoos? Empty Sales tax on glitter tattoos?

Post by IamGinaW on Wed May 11, 2011 2:35 pm

I was just wondering if you thought I needed to collect sales tax on glitter tattoos. I kind of figure I'm giving them the glitter and glue free, it's the service of putting it on that they're paying for but I don't want to get in trouble. Anyone have experience or input for me?

P.S. I'm in California, USA

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Sales tax on glitter tattoos? Empty Re: Sales tax on glitter tattoos?

Post by Noella on Wed May 11, 2011 3:36 pm

caveat - I am not a lawyer, don't work in the tax office, and do not live in California

My area (Ontario Canada) even recently moved from having a product based retail tax to having a goods and services based tax.

The way product vs service was explained to me by my tax office was that if any non reusable item was consumed as part of the service, that you would not give away for free (ie if the person was willing to do the work themselves), then that portion is a product. I used to occasionally do temporary tattoos at festivals - I had to be prepared to give them to people if they asked otherwise applying them could not be considered a service. I don't know if you use one time use stick on stencils, but they might be in the same position. The analogy I was given was that a mechanic charges for time and parts separately - and product based tax is on the parts.

The only way to be sure to do the right thing for your own situation is to consult your tax office, and if possible, get it in writing.

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