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Sales tax???
Rocketman766
Registered Users Posts: 332 Major grins
Please forgive me if I have overlooked the proper posting about this, but how is sales tax handled with our online purchases by customers? I just received my first order and when reviewing the details, I did not see sales tax included. Is it included in the (taken out prior to) total profit column? Also, when we set up a booth/table to display and sale our photos locally, I can only assume we must adhere to local/state sales tax laws. Is this correct? I would love to hear from someone who has done this. I just received a request to take the photos at an event coming up where we can set up a table to display and sale our photos of the event. I will also be directing them to our smugmug site. Thanks for the help in advance...
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we collect sales taxes from buyers who are from the state of California, where we're located as a company. We're technically the seller so that's the only sales taxes we collect at present. We collect that, and send to the State of California.
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Ok, Andy answered my first question, so this question pertains to LOCAL sales only. For those of you who set up at events and make photos available onsite or sale to clients locally, do you charge state and local sales tax? I am not here to report anyone, I just don't think some other local companies charge sales tax and I don't want to hear anyone say "Company XYZ doesn't charge sales tax...". I can apply online for a certificate of authority to charge sales tax, just curious if it is required. Sorry for what may seem like a no-brainer here, just want to do the right thing.
In Iowa, anyone selling pretty much anything needs to get a tax permit from the state. This empowers you to charge sales tax, but it also gives you the ability to buy supplies and equipment that will be used in your business without paying sales tax on them. Registering for a tax permit with the state basically lets them know that you are out there doing business, and that they can expect you to file your sales taxes with them.
In Iowa, we are required to collect sales tax on goods and services (basically anything you get paid for - sitting fees, prints, etc) and the retailer (you and me) can mark the prices as "tax included" - in which case we compute the tax and forward that to the state out of the gross receipts, or we can mark the prices as "plus tax", in which case we charge $5.00 for the item and add (in my case) 6%, making the price to the customer $5.30, and we get to remit that 0.30 to the state. In Iowa, we are required to file our sales taxes each quarter.
I am not required to collect tax on online sales, but any sales I make locally are subject to tax.
If you know you are in the right to charge sales tax, and someone complains that "so-and-so doesn't charge sales tax", your response could be that "so-and-so is breaking the law..." - or their pricing is "tax included" and the customer is unaware of that...
Hope this helps!
The state of Arkansas requires me to pay sales taxes for the city the prints were delivered to regardless of where the money was collected or the prints printed. PLEASE ADVISE!
Here's the response I got from the state;
Dear Mr. Manning:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>
Your questions concerning the taxability of professional photography services performed in this State, as set forth in your e-mail below, has been referred to me for response. GR-10 specifically provides that photography of all kinds is subject to Arkansas sales and use tax. A copy of that Rule is attached for your convenient review.
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The fact that the company paying you is in California will not change this fact. Sales tax will be due for all such services just like any other photographer doing the same thing. Otherwise, it would be unfair to in-state photographers who are doing the correct thing and collecting, reporting and remitting the applicable sales tax.
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Further, by hiring you to do this business in this State, the California company may very well have established “nexus” with this State. It is at least arguable that you will have become their representative or agent, which would establish nexus with this State and then the California company would be subject to all the laws of this State, which would include our sales tax laws, as well as income tax laws.
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I do acknowledge that the situation that is being contemplated is a unique set-up. Accordingly, you may wish to seek a Revenue Legal Counsel Written Legal Opinion Letter if you disagree with my analysis above. How to obtain such an Opinion is set forth below. I wish you the best in this new endeavor.<o:p></o:p>
The opinions that are given on the web are that -- general opinions/experiences.