Tax on fees

Once your shop fees are set up, there is one more decision per fee: is it taxable? The answer depends on your state, and getting it wrong is the kind of small error that compounds across thousands of repair orders. Pista gives every fee its own taxable flag so you can match your state's treatment exactly.

The rule most states follow

In a lot of states, a fee is taxed the same way the thing it is attached to is taxed. If your supplies fee is essentially a charge for consumable materials, many states treat it like parts and tax it. If a fee is tied to a service, it often follows the labor rule. This is why Pista keeps fee taxability separate from the parts and labor switches: your state may not treat them identically.

Set a fee's taxable flag

1. Go to Shop Settings, then Tax and Shop Fees, and select the store.
2. Under Shop Fees, open the fee you want to check (Shop Supplies, Disposal, or Hazmat).
3. Toggle Taxable on or off to match your state's treatment of that fee.
4. Save. New repair orders at that store apply the change right away.

You can set this independently per fee. It is normal to have a taxable supplies fee sitting next to a non-taxable government-style fee on the same invoice.

How it appears on the repair order

Each fee shows as its own line in the RO summary. A taxable fee rolls into the taxable subtotal and contributes to the tax line; a non-taxable fee sits outside it. Because every fee is a distinct line, you and the customer can both see precisely what was taxed.

Good to know: There is a difference between a fee that is taxable and a fee that is itself a tax. A government-mandated tire or battery disposal charge that the state collects is not the same as your shop's own disposal fee. Set up the regulated ones as their own non-taxable lines so you are not taxing a tax.

Tips

• Match the fee to its category. A supplies fee usually follows your parts rule. A service-tied fee usually follows your labor rule. Confirm with your accountant for your state.
• Do not double up. If your state already has you tax parts and your supplies fee is really a parts recovery, taxing the fee is correct, not redundant. But never apply tax to a line that already represents a tax collected for the state.
• Spot-check after changes. Flip a fee's taxable flag, write a quick test estimate, and confirm the tax line moves the way you expect. Delete the test ticket after.

What is next

Review the full taxable picture in Configuring what is taxable, and make sure your fees themselves are dialed in under Setting up shop fees.