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Separate Detachable Units

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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:

  • Clamps
  • Crowbars
  • Hand tools (hammers, pliers, screwdrivers, wrenches)
  • Knives
  • Repair parts
  • Soldering irons
  • Vacuum cleaners