Sales Tax or not?

[pictureaustin]

Should I be charging sales tax for shooting weddings in texas?

[AndrewCCM]

Yes.

More specifically, you should be charging sales tax for anything your sell with regards to goods. Providing images are considered goods unless you are providing them to another entity that is selling them (thus you are a contractor/second shooter, etc).

[CobyPhoto]

Originally Posted by pictureaustin

Should I be charging sales tax for shooting weddings in texas?

Long and short of it, there is no should I be "charging"(Actually collecting)...it is a requirement by law. The moment you decide to open a business, you should have a Texas Sales Tax Certificate in place.

No one :charges" sales tax, we simply collected as required by the law.

CJ

[AndrewSA]

yes...pretty much EVERYTHING is taxable...very few exceptions

[island bound]

I was told by Austin that if the customer receives anything from you, even a CD or 1 4x6, then the whole deal including setting fee is taxable.
I keep it simple and add sales tax to the total contract price for everything.

[CobyPhoto]

Originally Posted by island bound

...a CD or 1 4x6, then the whole deal including setting fee is taxable.
I keep it simple and add sales tax to the total contract price for everything.

Problem with this senario, you as a business owner are responsible for knowing when tax is applicable and when it isn't. Tax code is law, ignorance of the law isn't a good enough excuse. This wouldn't come in to play until you are audited, but then it is too late anyway.

CJ

[jonnydonut]

yes,
you gotta sales tax pretty much everything.

Get in touch with the state comptroller's office and get a tax ID number. I have to pay quarterly. Go here. www.window.state.tx.us/ to get a tax ID number. Of course you'll need a business first. Even if it's just a DBA through the county.
Then you gotta pay income tax as well. taxes blow.

I don't ever "charge" sales tax for portraits or weddings, I don't have the nerve to invoice them with sales tax, but I do reverse it out.

assume that "p" is the price you set.
p - (p/1.0825) = x = how much you owe the state government.

-jonny

edit:// I invoice with sales tax now. What I said is a stupid idea. Always charge it. If they present you with a tax exemption form, then take it off.

[pictureaustin]

Thanks to all for your input. I've had a permit since 2001 and do charge (collect) sales tax. I just want to make sure I really needed to do so.

[CobyPhoto]

Originally Posted by jonnydonut

I don't ever "charge" sales tax for portraits or weddings, I don't have the nerve to invoice them with sales tax, but I do reverse it out.

I am sure the plumber, electrician, grocery store, camera store and every other place you shop does the same thing. NOT.

The Comptrollers Office even DISCOURAGES this practise. (Don't believe me, call them and ask.)

You are merely doing what you are required by the law. Everyone else does it to you daily. Why should you not have the nerve to do so?

Even when I am shooting schools, events etc. where the amounts need to be even so change can easily be made, I figure my price, find the tax and round it up!

Why should you discount your work and prices 8.25% when no one else is going to do that for you?

And since we are mentioning taxes, don't forget to file your business personal property rendition and pay those taxes as well.

Taxes in the US are a way of life. People know this and understand it. Collect it on YOUR price. Don't dicount your price and pay the tax for a client. They wouldn't do it for you.

CJ

[Steelsun]

Don't forget - when you charge a flat amount and later take the taxes out and send that - you have to let the people know. It needs to be on the invoice/receipt/etc, something like "All prices include sales tax"
It's a law and they will penalize you for it.

[Canon bek]

Usually.

[adirty1]

Originally Posted by Steelsun

Don't forget - when you charge a flat amount and later take the taxes out and send that - you have to let the people know. It needs to be on the invoice/receipt/etc, something like "All prices include sales tax"
It's a law and they will penalize you for it.

saved me from typing that thanks.
take a look at vending machines they have it on there that tax is included.

[CobyPhoto]

Originally Posted by adirty1

saved me from typing that thanks.
take a look at vending machines they have it on there that tax is included.

Yea Dirty,

This is the reason that I prefer people to NOT give out advice in this section of the forum, unless they are 100% certain they are giving the right info. These little requirements can end up costing someone lots of money if they are ignored AND they think they are doing things correctly!

I have been in business for myself, am degreed, certified etc. and still don't know it all...but I am sure that the information I give out is based on first hand experience and know it is correct.

CJ