Itemized Bills (Shop Supply Charge)

[2011; R-2013 | Keywords: Iowa Legislation, Sales Tax, Itemized Bill] Auto shops may itemize bills, showing which items are services, which are parts, and which are consumed materials (materials used in repair that do not become a part of the vehicle). When itemizing occurs, shops should collect sales tax on the services and parts, but not on the consumed materials. If the bill is not itemized, the full charge is subject to tax. Example: An auto shop replaces a fender and paints a motor vehicle. The shop uses rags, sealer and primer, paint, solder, thinner, bolts, nuts and washers, masking tape,… Read More »