Do you charge sales tax?

 
Post new topic   Reply to topic    ProPhotoForums.com Forum Index :: Paper work, paper work, paper work!
View previous topic :: View next topic  
Author Message
Jack English
Forum Regular


Joined: 24 May 2009
Posts: 62
Location: San Diego, California

PostPosted: Tue Jul 12, 2011 7:18 pm    Post subject: Do you charge sales tax? Reply with quote

I don't, should I? If I remember right if you physically hand somebody something and you are charging them for it, you must charge sales tax. If you are not giving them something physical, but sent them a file say through the web, you do not have to charge sales tax.

Do you have a sellers permit?
_________________
www.jackenglish.com
www.surfimages.com
www.surfingphotographer.net
www.jackenglishphotography.com
Back to top
View user's profile Send private message Visit poster's website
shanekislack
Forum Regular


Joined: 04 Sep 2008
Posts: 212
Location: dallas

PostPosted: Tue Jul 12, 2011 10:30 pm    Post subject: Reply with quote

Hey Jack, most states that charge sales tax have caught on to that (physical/internet) and changed it accordingly. Texas surely has.

I very rarely "collect" sales tax because 1) my client is out of state 2) They have tax certificate saying they will pay it as I'm providing a piece of a bigger product for which they will charge sales tax.

Call your state tax office and they will explain when you need to collect tax on their behalf.

I do collect it and report it when my client is in state and I'm providing the end use product. Yes, I have a tax id.
_________________
I'm gonna sign your pitty on the runny kine.
Back to top
View user's profile Send private message Visit poster's website
Mike
Forum Regular


Joined: 22 Mar 2006
Posts: 231
Location: Los Angeles, where fun goes on vacation

PostPosted: Wed Jul 13, 2011 6:18 am    Post subject: Reply with quote

If you are a legitimate business (and if you file a schedule C, that is an indicator) and you "sell" "stuff" to people/companies you will need a tax id number /certificate, in CA it's through the State Board of Equalization. Whether or not you will be collecting any sales tax from your clients is another story.
There is an easy online form you fill out with gross sales, and the deductions for out of state sales, etc. I think the use tax is on there too for things bought out of state with no sales tax.
And if you are a legit business there's a good chance the BOE will catch up to you and suggest an audit for the past 3 to 7 years....They have computers now that cross check things with other tax authorities.

It's really not a big deal, fairly painless with the online filing. Be glad you aren't Amazon.
Back to top
View user's profile Send private message
Jack English
Forum Regular


Joined: 24 May 2009
Posts: 62
Location: San Diego, California

PostPosted: Thu Aug 11, 2011 12:54 pm    Post subject: Reply with quote

I confirmed with the Board of Equalization (CA.) and they said if I send a client a image via the net, then NO I do not have to charge sales tax, but if I hand a client a tangible item then YES I do have to charge sales tax.

I Love yousendit.com =)
_________________
www.jackenglish.com
www.surfimages.com
www.surfingphotographer.net
www.jackenglishphotography.com
Back to top
View user's profile Send private message Visit poster's website
Mike
Forum Regular


Joined: 22 Mar 2006
Posts: 231
Location: Los Angeles, where fun goes on vacation

PostPosted: Thu Aug 11, 2011 9:59 pm    Post subject: Reply with quote

Jack English wrote:
I confirmed with the Board of Equalization (CA.) and they said if I send a client a image via the net, then NO I do not have to charge sales tax, but if I hand a client a tangible item then YES I do have to charge sales tax.

I Love yousendit.com =)


That's the answer I got too...but are going to file a return? Or are you going under the BOE radar. I have a couple friends who are not filing with the BOE, I suggested they 'get legal' but don't push it. In case I get audited again I want a couple folks to turn in to save my skin! Twisted Evil
Back to top
View user's profile Send private message
Jack English
Forum Regular


Joined: 24 May 2009
Posts: 62
Location: San Diego, California

PostPosted: Fri Aug 12, 2011 2:08 am    Post subject: Reply with quote

Mike wrote:
Jack English wrote:
I confirmed with the Board of Equalization (CA.) and they said if I send a client a image via the net, then NO I do not have to charge sales tax, but if I hand a client a tangible item then YES I do have to charge sales tax.

I Love yousendit.com =)


That's the answer I got too...but are going to file a return? Or are you going under the BOE radar. I have a couple friends who are not filing with the BOE, I suggested they 'get legal' but don't push it. In case I get audited again I want a couple folks to turn in to save my skin! Twisted Evil


Yes, I file every year with my tax guy. I have been audited one time, but they through it out as I had all my receipts.
_________________
www.jackenglish.com
www.surfimages.com
www.surfingphotographer.net
www.jackenglishphotography.com
Back to top
View user's profile Send private message Visit poster's website
Mike
Forum Regular


Joined: 22 Mar 2006
Posts: 231
Location: Los Angeles, where fun goes on vacation

PostPosted: Fri Aug 12, 2011 11:21 pm    Post subject: Reply with quote

Jack English wrote:
Mike wrote:
Jack English wrote:
I confirmed with the Board of Equalization (CA.) and they said if I send a client a image via the net, then NO I do not have to charge sales tax, but if I hand a client a tangible item then YES I do have to charge sales tax.

I Love yousendit.com =)


That's the answer I got too...but are going to file a return? Or are you going under the BOE radar. I have a couple friends who are not filing with the BOE, I suggested they 'get legal' but don't push it. In case I get audited again I want a couple folks to turn in to save my skin! Twisted Evil


Yes, I file every year with my tax guy. I have been audited one time, but they through it out as I had all my receipts.


BOE is done quarterly , not yearly...
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    ProPhotoForums.com Forum Index :: Paper work, paper work, paper work! All times are GMT
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum




Powered by phpBB © 2001, 2002 phpBB Group
Charcoal2 Theme © Zarron Media