Repairs in Idaho – The Power of the Invoice
- Nov 18, 2015 | Gail Cole
The service of repairing tangible personal property is not subject to sales tax in Idaho in and of itself. However, many of the parts involved in repairs are taxable. When labor services and repair parts come together for a repair, sales tax can be as tricky as a tricky repair.
Tangible personal property subject to repair includes but is not limited to:
- Automobiles and electric motors
- Computers and other office equipment/electronics
- Farm equipment
- Recreational equipment
- Saws (includes sharpening)
- Televisions and other home electronics
The power of the invoice
When labor and parts are separately stated on customer invoices, labor is exempt and parts are subject to sales tax.
When labor and parts are combined on customer invoices, sales tax applies to the entire amount.
Fabrication v repair
Fabrication labor differs from repair labor. Repair restores an item to working condition. Fabrication is the design and manufacture of an item, so that it can be “used for a different purpose than that of the original components and raw materials used in the fabrication process.”
Fabrication labor is always subject to sales tax.
Additional information, including examples and guidance on how to treat discounts and exemptions, is available here.
Repairs of real property, such as the type of work performed by electricians, plumbers, and roofers, do not fall into this category. Information regarding how sales tax applies to repairs of real property is available on the Idaho State Tax Commission webpage, Contractors Working in Idaho.