Sales Tax with Wedding Packages?

JDrakeJDrake Registered Users Posts: 49 Big grins
edited September 26, 2014 in Mind Your Own Business
My husband recently talked to some tax people and wanting to do the right thing asked if we owed sales tax when I have a client sign up for a wedding package. He was told that yes, we would have to charge sales tax on a wedding package for my services if I provided anything other than shooting their wedding in the package... and they would owe it on the entire amount. at 9.25% sales tax... that isn't small change when you are talking wedding photography!

This doesn't seem right to me... I have never heard anything like this and I didn't pay taxes on my own photographer for my own wedding... can anyone give me advice on how to handle this? What do other photographers do with their clients and the issue of sales tax? (I live in TN btw). I wanted to hear from some other photographers to find out what they do when they charge people for their services and provide other items with the packages they sell their clients (not necessarily wedding photography).
The Painting Pony - Raising $ for Equine Cushings Disease Research.

Drake Photography - My Home on the Web

Comments

  • heatherfeatherheatherfeather Registered Users Posts: 2,738 Major grins
    edited August 29, 2008
    JDrake wrote:
    My husband recently talked to some tax people and wanting to do the right thing asked if we owed sales tax when I have a client sign up for a wedding package. He was told that yes, we would have to charge sales tax on a wedding package for my services if I provided anything other than shooting their wedding in the package... and they would owe it on the entire amount. at 9.25% sales tax... that isn't small change when you are talking wedding photography!

    This doesn't seem right to me... I have never heard anything like this and I didn't pay taxes on my own photographer for my own wedding... can anyone give me advice on how to handle this? What do other photographers do with their clients and the issue of sales tax? (I live in TN btw). I wanted to hear from some other photographers to find out what they do when they charge people for their services and provide other items with the packages they sell their clients (not necessarily wedding photography).

    I don't know what it is like in other states, but in AK, there is no State sales tax. But there is city sales tax. So, I only pay sales tax in the city where the service is being performed- where the wedding/ reception is at, or if I am delivering a product within city limits. There is also a maximum tax per sale here, (which is $12.50- practically nothing)

    If I were you I would just check with your city & state finance department and find out what the laws are there. Go to the horse's mouth.
    Heather
    my website
    facebook
  • Howard BarlowHoward Barlow Registered Users Posts: 118 Major grins
    edited August 30, 2008
    In Texas, yep.
    You don’t pay me by the hour. You pay for the years of hard work that made it possible for me to paint such a picture in only one hour! Pablo Picasso
  • Art ScottArt Scott Registered Users Posts: 8,959 Major grins
    edited August 30, 2008
    In years past in Ks I had to pay sales tax (city and state....it is combined here) for wedding and portrait shoots......so I altered my packages to define that for so many $ I would shoot the wedding consisting of so many hours total and all prints and albums were extra or I'd give it to them as a wedding gift at no charge..............but if your services are for anyting besides labor then Isuspect you'd have to pay sales tax......but not being a tax lawyer I am not qualified to be giving this info out for anyone to make business decisions on:D:D:D rolleyes1.gif
    "Genuine Fractals was, is and will always be the best solution for enlarging digital photos." ....Vincent Versace ... ... COPYRIGHT YOUR WORK ONLINE ... ... My Website

  • SamSam Registered Users Posts: 7,419 Major grins
    edited August 30, 2008
    You, of course need to check with your state tax people. Here in ca photography services are not taxable, but prints, Cd's, DVDs are. The answer is to break out the service from the prints, (deliverables) on your invoice. If you package it up, and invoice it as a package with one price then the entire amount is taxable.

    Sam
    www.samlinvillephotography.com
  • grainhappygrainhappy Registered Users Posts: 2 Beginner grinner
    edited September 26, 2014
    Yes, sales tax law is that ridiculous
    JDrake wrote: »
    My husband recently talked to some tax people and wanting to do the right thing asked if we owed sales tax when I have a client sign up for a wedding package. He was told that yes, we would have to charge sales tax on a wedding package for my services if I provided anything other than shooting their wedding in the package... and they would owe it on the entire amount. at 9.25% sales tax... that isn't small change when you are talking wedding photography!

    This doesn't seem right to me... I have never heard anything like this and I didn't pay taxes on my own photographer for my own wedding... can anyone give me advice on how to handle this? What do other photographers do with their clients and the issue of sales tax? (I live in TN btw). I wanted to hear from some other photographers to find out what they do when they charge people for their services and provide other items with the packages they sell their clients (not necessarily wedding photography).

    That's totally correct. It's kinda crazy but yea, if you provide any tangible physical product based on the photos you take at their wedding, you charge sales tax on the entire amount (if you deliver within TN). However, if you just deliver those same files DIGITALLY, on the internet, with no physical product, you don't charge sales tax at all.

    Eddie Irvin
    Grainhappy
    Sales Tax in TN eBook

    Canon shooter! 5dmkiii/24-70L/35L/70-200L/45mm TS-E
Sign In or Register to comment.