Using the Sales and Use Tax Interface > Self-Assessment of Taxes > Service Contracts
Service Contracts
In some situations, consumer use tax must be paid for parts used on a service call if they were not originally taxed on the governing service contract.
If taxes have already been charged on a service contract, then repair parts and labor are not taxed during call activity recording and call invoice maintenance. Otherwise, consumer use tax is charged, or self-assessed, based on the location where the repair was done.
Note: There is no tax on repair costs for warranty items, whether parts or labor. It is assumed that these have been priced into the original sale, and, therefore, taxes are considered to have been collected. Because of this, QAD does not support tax calculations for warranty items.