If you’ve ever paid for a service, gotten a receipt marked “paid in full,” and then received another invoice for more money, you’re not alone. A Georgia homeowner recently found themselves in exactly that position after an HVAC company repaired their furnace. The bill came to $1,400, which they paid on the spot. Case closed, right?  Maybe not.

 

A few days later, the company sent a new invoice for an additional $15. The reason? Sales tax. It hadn’t been included in the original invoice.

So… is this legal? And more importantly, are you still required to pay?

The Sales Tax Oversight That Can Cost You

Georgia, like most states, applies sales tax to many goods and services. Believe it or not, that includes HVAC equipment and repair parts. While labor on its own may not always be taxed, tangible products (like furnace parts) almost always are. That means if a business forgets to charge sales tax at the time of sale, it doesn't mean the tax disappears. Unfortunately, the responsibility to pay it doesn’t disappear either. If the vendor didn’t add it, you may still owe it. Enter what’s known as the “use tax.”

It’s frustrating to feel nickel-and-dimed, but understanding your responsibility helps you avoid larger penalties. (iStock)

Sales Tax vs. Use Tax: What’s the Difference?

In basic terms:

  • Sales Tax is charged and collected by the seller at the time of purchase.
  • Use Tax is paid by the buyer when the seller fails to collect sales tax on a taxable item.

The Georgia Department of Revenue requires consumers to pay use tax directly when necessary. This isn’t a workaround, it’s the law.

 

In the HVAC example, the $15 represents the tax that should have been collected upfront. Whether the company collects it now or you pay it later to the state, it’s still owed. The HVAC company likely realized its mistake and tried to fix it after the fact. This may feel like a bait-and-switch from the customer’s perspective, but it's technically within the company’s rights.

What Should You Do?

If you’re in a similar situation, here’s a practical approach:

  • Verify the invoice details: Was the item or service taxable? Georgia taxes most physical products but not all services.
  • Request clarification: Ask the business to break down exactly what the new charge covers. If it's for a part or product, tax may apply.
  • Decide who gets paid: You can either pay the business the tax they missed, or report the use tax on your own when you file with the Georgia Department of Revenue.
  • Consult a tax expert: Especially if the situation is unclear or involves a larger sum, a certified tax professional or accountant can advise on your specific obligation.

While it’s frustrating to feel like you’re being nickel-and-dimed, understanding your responsibility helps you avoid larger penalties down the line.

Can the Company “Erase” the Charge?

Legally, the company may be required to collect the tax, so asking them to erase it might not get you far. In some cases, a business might choose to absorb the cost themselves as a goodwill gesture, but they’re not obligated to do so.

 

It’s worth having a polite conversation. If their error led to the surprise bill, a reputable company may be willing to compromise. But don’t count on it. Ultimately, the state still expects to be paid.

Charging after-the-fact sales tax feels wrong from the customer’s perspective, but it's technically within the company’s rights. (iStock)

Protecting Yourself From Billing Surprises

This type of after-the-fact invoicing happens more than you might think.  It’s not just with HVAC companies either, but also appliance repairs, contractors, and online sellers, especially those based out of state.

 

To avoid these headaches:

  • Ask about tax before paying: Before you sign or swipe, ask whether the invoice includes all applicable taxes.
  • Keep detailed records: If you’re ever asked to pay more later, having the original invoice and receipt can help clarify what happened.
  • Stay informed on local tax laws: Georgia’s Department of Revenue website has straightforward guides on what is and isn’t taxable, and how use tax works.

Final Thoughts

Nobody likes a surprise bill, especially after thinking everything was squared away. But in this case, that extra $15 wasn’t a scam or a trick. It was a correction, albeit a clumsy one. Sales tax laws don’t vanish because someone forgot to apply them. And while it may feel unfair, resolving it quickly is better than ignoring it.

What would you do in this situation: pay the company, or file the use tax yourself? And how confident are you in spotting when something should be taxed?