California Sales Tax for Interior Designers - Time & Materials Contract

You are also considered the consumer of materials in a time and materials construction contract unless you bill a separate amount for materials, and:


The contract explicitly states that ownership of the materials transfers to the client before they are installed, or

You bill your client an amount for sales tax on your invoice.

If you bill a separate amount for materials and either condition above applies, you are considered the retailer of the materials you furnish and your charges for them are taxable.


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

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