Getting a Tax ID

[Wil_Bloodworth]

Originally Posted by FireHeart Photography

Okay so the Texas tax code states that for photographers: S
ales of photographs are taxable. Photographs
can be made from film (negatives
or positive transparencies) or from digital
or electronic files, and sold as prints, on a
DVD, CD, digitally, electronically
or by any other medium.
All expenses directly related
to the production and sale of
photographs and billed to the
customer are subject to tax
regardless of whether the photographer
bills lump sum, at
an hourly rate, or by itemizing
each expense. Such expenses
may include travel, meals and
lodging while shooting on
location, costs of acquiring
props and models and “professional
services” in shooting
the photograph.
A photographer billing a client for sitting fees
must collect sales tax on the entire amount
charged for all services performed at the time
the pictures are taken (including the sitting fees),
whether the billing is lump sum or separated.
If the customer does not purchase photographs,
in any form, the photographer can refund sales tax -

Bottomline - Photographers have to charge sales tax for everything... and btw - if you buy a camera it's not tax free unless you plan to sell it to someone and collect the taxes...

That was mostly correct. Here's the phrase to remember when knowing when you, the photographer, has to pay sales tax: "If what your buying is directly used to make the product you're selling, you do NOT pay sales tax". So, ANY cameras, lenses, cables, strobes, filters, props, etc... are all used to make the actual product... and are therefore not subject to taxation.

- Wil

[sanmay]

It's not all fun and games !!!!!

[FireHeart Photography]

Hey Will - I was just reading about this and here is the link to the site that explains the whole thing - you are right - DAMM - I've been paying tax on cameras and equipment when i could have had an exeption!!
http://www.window.state.tx.us/taxinf...s/tx94_176.pdf

One important note - YOU CAN NOT USE IF FOR PERSONAL USE AT ALL - or it is taxable.

[tukaniray]

Thanks for the link ... I will read up on it ...

And in the next week or so I will call up an attorney to help me out.

Thanks guys for the info ... I hope this will help others who are just getting in or who are thinking about jumping in.

-Ray-