Can an autobody shop deduct sales tax from insurance payments for repairs if I change my mind and don’t get the car fixed at that autoshop?

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Can an autobody shop deduct sales tax from insurance payments for repairs if I change my mind and don’t get the car fixed at that autoshop?

Asked on March 6, 2013 under Accident Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Sales tax is only deducted when there is an actual sale of goods or services. If you do not have the work done at that shop, there was no sale; therefore, there would be no deduction of sales tax. No sale = no sales tax.


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