Thursday, April 16, 2009

Is it standard practice to charge tax on top of consulting fees or inclusive? -

In Australia, you have to provide a statement of your fee structure. If the customer provides a Tax Exempt Number then the Tax is included but also deducted from the running Total.Consulting Fee @ $50 per hour x 10 hours = $500Sales Tax or Value Added Tax (or other Tax) @10% Plus $50Tax Exempt Number 112345423 Less $50Total Payable $500 You are also expected to pay Income Tax for the fee.If you provide a service to a person who is not a business or a business cannot provide a Tax Exempt Number at the time of Bill preparation, include the tax and the business or Company can claim back tax through their own tax statements submissions.

In most states, professional services are NOT subject to sales tax.

You have already paid your fees. So why tax?

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