Are Janitorial and Cleaning Services Taxable?

If you operate a janitorial, or custodial service, you should be collecting sales and use tax. You need to obtain a sales tax permit.

Tax is due on the charge to clean a home, office, warehouse, garage, restaurant, or any other building.  For example, you should collect tax on your charges for such things as cleaning; washing windows, floors, walls, and ceilings; cleaning chimneys or air ducts; replacing light bulbs or fuses and picking up trash indoors or outdoors.

If you hire or contract janitorial services; sales tax is due on the charges.  If the person or business providing the janitorial services is not permitted for sales tax or does not charge you sales tax on the cleaning services provided;  you as the purchaser are still liable for the sales tax due on the charges. For example, if you operate a business office such as a doctor office and you hire individuals under contract labor, and the service provider is not permitted for sales, you are still liable for the sales tax.

Temporary employee services purchased by an employer are not subject to tax if the service is performed by an employee of a temporary employment service as defined by: Section  93.001, Labor Code; the employee supplements the employer’s existing workforce on a temporary basis; the service is normally performed by the employer’s own employees; the employer provides all supplies and equipment necessary; and the employee is under the direct or general supervision of the employer to whom the help is furnished.

Of course, these examples don’t cover every situation. If you have a question, call us.