California Sales Tax for Interior Designers - Furniture Reupholstering

Furniture reupholstering generally involves sales of materials as well as fabrication, repair, and installation labor.
Sales tax applies to your charges for materials and parts such as fabric, foam rubber, springs, cushions, legs, and casters.
Tax also applies to your charges for items commonly referred to as “findings.”
These items include merchandise with small unit values such as brads, buttons, tacks, twine, and thread.
You may choose to either itemize your charge for findings or use the alternative invoicing method described later.
When you reupholster furniture, your charges for cutting and sewing materials for coverings, including seat and back cushions, are taxable fabrication labor.
However, stripping old materials, applying new materials, retying springs, and refinishing or applying faux finishes are nontaxable repair labor.

Invoicing Options
You may use one of two methods to invoice your clients for reupholstery work. You may either:
Itemize your charge for all materials and findings used, charges for fabrication labor, and charges for nontaxable repair labor, or
List one charge for materials (do not include findings) separate from total labor charges. If you use this method, you may claim 80 percent of your total labor as nontaxable. The remaining 20 percent will be considered taxable charges for fabrication labor and findings.


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

Course: https://salestaxsolutions2000.com/california-sales-tax-interior-designers




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