Questions and Answers
Beauty Shops/Barber Shop
Kansas Retailers' Sales Tax
Sales/Services provided by Beauty/Barber Shops
BEAUTY SHOPS/BARBER SHOPS
STATUS: HAIR CUTS EXEMPT
FINGERNAILS (ARTIFICIAL) EXEMPT
EAR PIERCING EXEMPT
BODY PIERCING EXEMPT
Beauty shops and barber shops purchasing supplies that are not for the purpose of resale are subject to sales tax. Such as:
Items purchased from out of state are subject to the consumer's compensating use tax. If purchased in state, they are subject to sales tax.
Items purchased for the purpose of resale are exempt. The retailer must provide a resale exemption certificate with a valid Kansas retail sales tax number. When an item is pulled from inventory that is for resale and used in the business, it is then consumed by the business and subject to sales tax as items consumed by you purchased without tax. (line 2 of the retail sales tax for STD 16).
Items pulled from inventory for another operator (other than the owner) is subject to sales tax.
Direct purchases by a beauty school and barber school are
exempt under 79-3606(b). These schools do not meet the definition of an educational institution.
Wholesale supply companies that are selling to beauty shops and barber shops that do not have a sales tax number and that are consuming the supplies themselves are no longer wholesale companies under
K.A.R. 92-19-2a(7), which states: "Each wholesaler, distributor, and manufacturer that makes retail sales, including sales to employees, shall secure a registration certificate and report these sales to the department. To simplify reporting, the wholesaler, distributor, or manufacturer may set up a retail division to report the retail sales. Transfers of inventory to the retail division for resale shall be exempt sales for resale, and the sales tax returns shall reflect only the sales made by the retail division to final consumers."
Barber shops and beauty parlors do not collect tax on the services they provide. However, they are responsible for the collection on any tangible personal property they sell. (i.e. shampoo, conditioner or hair spray.)
Barber shops and beauty parlors must pay sales/use tax on items used to perform their services.
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