California Sales Tax for Interior Designers - Subcontracting

You may subcontract out work including sewing, upholstery, custom furniture production, picture framing, etc.


When you contract with your client to provide an item custom made by a subcontractor, your charge for that item and the labor to make it is taxable.

However, if the subcontractor performs repair or installation labor as part of your contract, your charges for that work are not taxable.

Decorators and designers sometimes encounter difficulty in properly billing and reporting taxable and nontaxable charges because their subcontractors do not furnish them with a breakdown of materials, repair labor, and installation labor.

The subcontractors may assume that because their sale to you is a sale for resale, no breakdown is necessary.

For your own protection, you are urged to insist on accurate and itemized billings from subcontractors.


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

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

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