To Tax or Not to Tax

[AndrewSA]

What if I do some product photography through a design studio and they are billing it to their client?

[CobyPhoto]

Originally Posted by swinglight

What if I do some product photography through a design studio and they are billing it to their client?

IF they provide you with a valid resale certificate for design services and are re-selling your images in their work, then no, you do not have to collect sales tax on your service.

Be forewarned, you must, MUST have a copy of that resale certificate and signed exemption form on file. If you are audited and you do not, they will treat it as if you failed to collect and report the tax! That means fines and interest for you!

CJ

[*Mike*]

Originally Posted by bondarnes

Unless they have a resale certificate or a non profit exemtion, We ALWAYS charge sales tax. It is a pass thru anyway so to be safe we charge it and pay it to the state.

This is my philosophy too. Doesn't cost us anything, and clients expect to pay tax anyway... Only thing that I haven't paid sales tax on has been retainers for weddings that fell through. But, the comptroller's office is generally pretty helpful - you just have to watch, sometimes two people will give you two different answers.

[CobyPhoto]

Originally Posted by *Mike*

This is my philosophy too. Doesn't cost us anything, and clients expect to pay tax anyway... Only thing that I haven't paid sales tax on has been retainers for weddings that fell through. But, the comptroller's office is generally pretty helpful - you just have to watch, sometimes two people will give you two different answers.

This is an ok theory. But in truth, you should be completely aware of the rules and regulations on this. If you are ever audited, it will become an issue. Their stance on this is ignorance of the law, rules and regulations concerning state sales tax is not an excuse, it is the responsiblity of the business owner. You SHOULD know when and who to tax and why.

That said, it isn't as bad an issue if you don't tax someone when you should have! The State wants their money!

CJ

[boomerd35]

Originally Posted by *Mike*

- you just have to watch, sometimes two people will give you two different answers.

When I call the Comptroller's office with a question, I ask the person who gives me an answer to point me to the tax code section on their website that pertains/proves the answer to the particular question. Then you can print it out write some notes to explain later (if you need to).

[AndrewSA]

I called and yes, this is what they told me. Thanks!

Originally Posted by bondarnes

Unless they have a resale certificate or a non profit exemtion, We ALWAYS charge sales tax. It is a pass thru anyway so to be safe we charge it and pay it to the state.

[AndrewSA]

I have starting doing some work for a non profit that does have exemption. I have recieved a form from them for the invoice. Do I need to get this form everytime I do work for them, or is this a one time thing?

Originally Posted by bondarnes

Unless they have a resale certificate or a non profit exemtion, We ALWAYS charge sales tax. It is a pass thru anyway so to be safe we charge it and pay it to the state.

[CobyPhoto]

EVERYTIME...that said, I cheat a little too. I will copy the form and attach it to the invoice if the form isn't dated.

If they date the frm, you need to have one each time you invoice them for the work. That is your proof they are indeed tax exempt.

CJ

[ShaneKislack]

BTW, you aren't charging sales tax...you are collecting it.

[brit41]

Wowzers- I feel major informational overload after reading this thread.... but it was precisely what I need to read! Thanks yall!

[brit41]

Wowzers- I feel major informational overload after reading this thread.... but it was precisely what I need to read! Thanks yall!