(a)
Tax due
on supplies purchased. A barber or beautician shall pay sales tax to
his supplier upon the purchase of barber and beautician supplies, materials,
tools and equipment, whether for use in the performance of services or for
resale. Suppliers who sell property to barbers and beauticians are responsible
for collecting and remitting the sales tax to the Department. With respect to
tax returns and remittances, suppliers are governed by the provisions of
sections 215-219 of the TRC (72 P. S. §§
7215-7219).
(b)
Tax to be collected on supplies
sold. Although a barber or beautician is required to pay tax to his
supplier, he shall also register with the Bureau for the collection and
remissions of sales tax upon his sales of property or services, such as charges
for performing services on wigs, falls or other type hair pieces. A barber or
beautician is not permitted to collect sales tax from a customer on property
which he uses in the performance of his services.
(c)
Credit for tax paid to
supplier. If a barber or beautician makes an ordinary sale of some
item of property, he shall collect the full 6.0 % sales tax from the purchaser,
on the purchase price of the item. However, at the time the tax is reported, a
credit may be taken on account of "Taxes Paid-Purchases Resold" (TPPR) against
the tax which was collected, equal in amount to the tax which was paid to a
supplier. In other words, upon these items he shall pay over to the Bureau a
tax payment computed upon the markup on items sold. He shall indicate upon the
return the amount of tax which was paid to a supplier upon items sold, which is
being credited against the tax collected from customers on account of TPPR. It
is not sufficient merely to report and remit tax on the mark-up without
indicating to the Bureau upon the return, the amount of credit which was taken.
Example. B, a barber, purchases 200
bottles of hair tonic during the month of August at $1.00 a bottle; B pays tax
to the supplier upon the price paid for the hair tonic. B later uses 20 bottles
of tonic in his own work and resells 180 bottles at $2.00 per bottle. B
collects tax upon the sale of the 180 bottles. In reporting the tax upon the
return, B shall complete the return form as follows:
| (1) Total Gross Sales, Rentals and
Services |
$360.00 |
| (2) Total Nontaxable Sales, Rentals and
Services |
None |
| (3) Net Taxable (Line 1 less 2) |
$360.00
|
| (4) Total Amount of Tax Collected |
$21.60
|
| (5) Less 1% Discount |
-0.22 |
| (6) Net Amount of Tax Due |
$21.38 |
| (7) Amount of Use Tax Incurred |
None |
| (8) Total Tax Due $21.38 Less
TPPR-10.80 |
$10.58 |
TPPR represents Taxes Paid-Purchases Resold. This
represents the amount of tax paid by B to the supplier on the bottles which B
resold (180 x $1.00, cost per bottle = $180 x 6% = $10.80).
(d)
Tax returns and
remittance. Tax returns and remittance shall conform with the
following:
(1) With respect to tax returns and
remittances by barbers and beauticians, see the provisions of sections 215-219
of the TRC (72 P. S. §§
7215-7219).
(2) Returns shall be filed under §
34.3 (relating to tax
returns).
