Free guide for contractors
Do contractors charge sales tax in Nevada?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
NV Nevada
Usually no tax on the invoiceNo, for work improving real property. Nevada makes the contractor the consumer of materials, taxed on its purchase.
Nevada's regulation makes a construction contractor the consumer of all the tangible personal property it buys to improve real property. The tax applies to the price the contractor pays for it.
The definition of a construction contract covers lump-sum and time-and-material contracts alike. Repairs done under a construction contract follow the same rule.
Work on things that stay movable is different. Repairers are retailers of the parts and materials they furnish when their value is substantial, and appliance repairs are listed as substantial.
It turns on: whether the work improves real property or repairs something movable; on a repair, whether labor is stated separately.
Watch out for
- On a repair of personal property such as an appliance, separately stated labor is not taxed. If labor is not separated, tax applies to the entire charge (NAC 372.390(1)).
- Anything sold without being installed can still be taxable (NAC 372.390, 372.400).
“A construction contractor is the consumer of all the tangible personal property purchased for use in improving real property”NAC 372.200(1)