Taxable:If you are selling a new item (e.g., a t-shirt) that you have embroidered, theentirecharge, including the embroidery service, is subject to sales tax.
Resale Certificate:If a customer provides you with a valid resale certificate, indicating they will resell the embroidered item, then you would not chargethemsales tax on the embroidery service.
2. Embroidering Used Items:
Generally Not Taxable:If you are embroidering a used item of clothing provided by the customer, the embroidery service is generallynottaxable, unless:
The retail value of the thread used exceeds 10% of the total charge for the service.
You separately state the charge for the thread.
The embroidery work is considered unusual, such as turning the clothing into a work of art.
In Summary:
Taxable:Embroidery services on new items you sell or on items for customers who do not provide a resale certificate.
Generally Not Taxable:Embroidery services on used items provided by the customer (unless the thread cost exceeds 10% or is separately stated, or the work is unusual).