SUBJECT: Barbers and Beauticians

REFERENCE: IC 6-2.5-4-1; 45 IAC 2.2-1-1; 45 IAC 2.2-4-2

DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

SUMMARY OF CHANGES

This bulletin has been updated to reflect the Department's bulletin formatting procedures.

I. SERVICES PERFORMED BY BARBERS AND BEAUTICIANS

Services provided by barbers and beauticians are not subject to Indiana sales tax. Such services include permanents, shaves, haircuts, extensions, braids, braiding, and dye services.

II. SUPPLIES USED BY BARBERS AND BEAUTICIANS

A barber or beautician is liable for Indiana sales tax on the purchase of all supplies and equipment used in the course of performing hair services. Indiana sales tax should normally be paid on these items at the time of purchase.

III. SUPPLIES PURCHASED FOR SALE

A barber and beautician who purchases products for the purpose of resale must register with the Department as a retail merchant and collect and remit tax on all product sales. Sales tax is not due on the original purchase of these products if purchased for the purpose of resale. Examples include shampoos, conditioners, dry shampoo, hair spray, hair paste, and hair oils.

IV. OFFICE EQUIPMENT

The purchase of furnishing, office equipment, and utilities used by a barber or beautician in the operation of a barber shop or salon is subject to Indiana sales tax. Examples include hair dryers, stylist chairs, bookshelves, computers, mirrors, foils, brushes, water, and electricity.

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Adam J. Krupp

Commissioner