A common practice in my area is to collect local sales taxes on products sold and then send them to the city/ state on quarterly/annual reports. However, no sales tax is collected on services, massage, haircuts, facials, etc. Recently it was noted that government offices are defining business engagements as " performing or providing services or selling, leasing, renting, delivering or installing tangible personal property for storage, use or consumption within the City". As a sole proprietor, am I supposed to render sales tax payments for services provided, a tax not collected upfront from clientele?
