Thursday, 30 July 2015

Taxable Items in Beauty Salon

Determining taxable items in a beauty salon can be confusing because salons typically offer both taxable and non-taxable services and products. A salon is expected by law to collect taxes on taxable items and pay them to the state. Therefore, if a customer is not taxed on taxable items, the salon owner must pay the tax from his own pocket.

Consumable Products
Hair care products sold at salons and taken home by the customers are taxable items. Shampoo, conditioner and detangler are examples taxable items. While take home hair care products are taxable, the actual product used on the customer during the salon visit is not. For example, the shampoo used to clean the customers hair, or the highlighting solution used to produce the customer's hairstyle during the appointment are incorporated into the appointment charge and not taxed.

Equipment
Tools and equipment purchased by stylists and salons are taxable items. Hair brushes, scissors and hair straightening irons all fall under taxable items. In addition, items used to make the customer more comfortable, including hair towels, blow driers and hair clips during the styling appointment are taxable as well.

Large Items
Each salon station and chair purchased by the salon is taxable. The shampoo bowls, as well as the appointment station and cash registers are also taxable. The shampoo used in the shampoo bowls is not because it is a product used in the completion of a customer's appointment.

Waxes
Salons offering waxing must pay tax for the wax solution when purchased for use, but cannot charge sales tax to the customer for the use of the product while in the salon. If, however, the salon sells the customer a container of wax to take home and use, the container of wax is taxable.

Rental Equipment
Items the salon rents to customers for use in the salon are taxable. For example, a salon that has tanning booths will often rent goggles to the customers. They might also sell goggles. Whether the customer rents the goggles for the tan or buys them, both options are taxable.

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