1. (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).
2. (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.

3. (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).

4. (d) Tax returns and remittance. Tax returns and remittance shall conform with the following:

   1. (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. (2) Returns shall be filed under § 34.3 (relating to tax returns).

Authority

The provisions of this § 58.6 issued under the Tax Reform Code of 1971 (72 P. S. § 7270).

Source

The provisions of this § 58.6 amended December 27, 1985, effective December 31, 1985, 15 Pa.B. 4584. Immediately preceding text appears at serial pages (89242) to (89243).