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[Music] is it the general contractor the subcontractor or the customer that pays a sales tax on the materials used in a construction job im mancer ansari with nexus tax defense the general rule is that sales tax is paid on materials used in construction at the time of the purchase if you do not pay sales tax at the time of the purchase on your construction materials then you would have to itemize your bill to your client and have the sales tax broken out on a separate line item to clearly show how much they have paid again you are also breaking up the labor separately as well so that there is no confusion on how much sales tax needs to be paid whether you are the general contractor or the subcontractor you will need to collect and pay sales tax on the construction materials so youre simply not off the hook when youre a subcontractor but what happens when youre dealing with an exempt organization try your best to have them purchase all the materials using their tax exempt status th