California Sales Tax for Interior Designers - Fabrication Labor

When you make a new item or change the form or function of an existing item and then sell it to your client, the labor is considered fabrication labor.

Alteration of new items includes any work performed upon new items such as garments, bedding, draperies, or other personal and household items to meet the requirements of your customer.

Your work may involve adding or removing material from the item, rearranging, restyling or otherwise altering the item. 

Alterations such as these, result in the creation or production of a new item or constitute a step in the creation or production of a new item for your customer.

Tax applies to your charges for fabrication labor whether you provide the materials or use materials provided by your client.

Examples of taxable fabrication labor include:

  • Quilting new fabric.
  • Converting a vase to a lamp.
  • Making bedspreads, draperies, slip covers, and pillows from fabric provided by you or your client.
  • Making an area rug from carpet remnants.
  • Converting an old love seat into separate chairs.
  • Cutting and sewing materials to be used in reupholstering. 
  • Dyeing a client’s new rug or other new fabrics.

 

Source: California Department of Tax & Fee Administration (CDTFA)

 

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