Separate Detachable Units
Separate detachable units used to provide taxable services are exempt from tax.
To qualify, the item must meet the following requirements:
- It must be used to provide a taxable service.
- It must be an accessory tool, equipment, or other item that attaches to a machine while in use.
- Its ordinary useful life must be less than 12 months when used to provide taxable services under the normal use of the provider.
Examples of separate detachable units:
- Abrasive and polishing belts
- Cutting tools
- Drill bits
- Polishing strips and buffers
- Saw wires or blades
- Vacuum filters
Taxable items include:
- Hand tools (hammers, pliers, screwdrivers, wrenches)
- Repair parts
- Soldering irons
- Vacuum cleaners