Howdy! Should I be charging sales tax for my design work I do on a freelance basis? I am pretty sure sales tax is for physical goods, but I saw on Billings2.com (great billing software) that they included sales tax on a sample bill.
Any thoughts appreciated...
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Dirt and Rust
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Well, you may want to check with your Department of Revenue at Yo Mama's House (listed as your location on your profile), but here in Tennessee, as long as I keep my business a purely-service business, don't sell any tangible goods and retain all rights and usage to my work, I don't have to collect sales tax.
Let me know if you need further elaboration and tell Mom I said hello.
Terrell Thornhill
e-zign Design Group
Ha ha. You are quite funny my friend. ;) I definitely don't need further elaboration as what you've said is perfectly clear. I think Billing2.com screwed up their demo image for their software.
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natobasso
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Dirt and Rust
So... Where'd a white boy learn to play bass like that? :)
Good stuff, man.
Terrell Thornhill
e-zign Design Group
Hey thanks man! I've been doing it for 21 years now and I grew up in the Bay Area of California (just south of San Francisco) so I had a lot of funk influence. Long live 70s music.
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natobasso
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Dirt and Rust
You charge tax only on things such as printing that you farm out. If you do anything like that, and if your state's like mine, you'll need a reseller's license. You show this to your printer so that they don't charge you any sales tax. You mark up the printer's bill, add the sales tax, and hand that over to the client, who pays you (theoretically). You then pay the printer and send the sales tax to the state (usually monthly or quarterly, using special forms they'll give you).
Ain't art fun? :-)
Mara
Yep. That's why I don't get into sales tax and don't get into printer mark up. I'll charge for my time to be the intermediary, but I am pretty transparent with regard to the printer's pricing. The bill also doesn't fall on me. ;)
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natobasso
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Dirt and Rust