A construction receipt is the written record of a payment made to a construction company. After receiving the expected revenue, the company issues the receipt to the client (payee). The receipt includes detailed information about both parties, costs, and the payment itself and can apply to in-full payments, partial payments, and deposits.
Construction receipts are valuable to construction companies because they provide detailed financial documentation of services rendered and payments received. They are also valuable for their clients’ budgeting and tax purposes.
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Who Uses a Construction Receipt?
Any company or independent contractor that provides construction-related services can utilize a construction receipt. These include but are not limited to:
- Building companies;
- Carpenters;
- General contractors;
- Renovation contractors;
- Restoration contractors;
- Roofing companies;
- Sign companies; and
- Window installers.
Are Construction Services Subject to Sales Taxes?
Construction services are subject to state sales taxes in the following states:
- Connecticut, Delaware (gross receipts tax), Hawaii, Idaho, Kansas, New Mexico, Oklahoma, South Dakota, and Washington.
What to Include
- Client name, address, phone number;
- Construction company name, license number, address, phone number, email address, and website (if applicable);
- Date(s) and time(s) of service;
- Detailed description of materials and their associated quantities and costs;
- Detailed description of services rendered and their associated costs;
- Payment method (cash, check, credit card, other);
- Receipt number;
- Tax rate (if applicable);
- Total tax amount (if applicable);
- Total amount due;
- Total balance due (if applicable); and
- Transaction date.