Why Should Manufacturers Ask Vendors to Break Out Labor & Material Charges?
Manufacturers should always ask vendors to itemize their invoices. This practice helps manufacturers take advantage of sales tax exemptions offered by states.
Most states offer tax breaks for the purchase of materials and equipment used during the manufacturing process. Some states also will not tax repair and installation labor, if the charges are billed separately on invoices. Watch this video to learn more details about how manufacturers can qualify for these sales tax exemptions