Collecting sales tax on a photo that was sold online?

12 years 7 months ago #156858 by Garbo
If you sell a photo online are you suppose to collect sales tax on the cost of the photo? Or does that only apply to tangible items? I was only told you only needed to if the person lived in the same state as you, but I couldn't find out if the tax needs to be collected if the item sold is an image?

Any tax guru's here?

Nikon D300: 24-70 2.8 | 70-200 2.8 VR |Sigma 150 2.8 | 50 1.4 | SB-800
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12 years 7 months ago #156865 by Frisco
Certainly no tax pro, but to my understanding was it would need to be a tangible product part of your business. Like if you sold a canvas print of that photo on regular basis, then you would have to collect tax if in the same state.

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12 years 7 months ago #156867 by robbie
I ain`t no guru but if you personally sells the photo instate then you will have to collect sales tax but you will have to apply to your State dept of revenue for the rightbto collect sales tax.To ship out of state the payment of the sales tax lies with the buyer.If an online site sells the photo then that site will collect and pay the sales tax for the state where that site is located.If the percentage of the buyer`s state is more than the seller`s state rate then the buyer should pay the difference.
Florida where I lives,don`t charge sales tax on Files[digital images] when I last checked. Other state maybe different.


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12 years 7 months ago #156871 by Garbo
Hey thanks guys. I'm thinking I better check with my CPA. I really don't want to get into any trouble. I thought if non product I wouldn't need to. Better be safe and just call Mr. CPA and hope he doesn't act like my attorney can bill me for the hour :pinch:

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12 years 7 months ago #156917 by robbie

Garbo wrote: Hey thanks guys. I'm thinking I better check with my CPA. I really don't want to get into any trouble. I thought if non product I wouldn't need to. Better be safe and just call Mr. CPA and hope he doesn't act like my attorney can bill me for the hour :pinch:

Please let us know what he says.
Thanks!


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12 years 7 months ago #156990 by geoffellis
I hate to say it but taxes are incredibly complicated. No one here will be able to give you a definitive answer because there are too many variables based on your location

For example in Canada, you have PST and GST or HST (depending on province). now its been about 4 years since i looked it up, but each one has different definitions of a sale. Some also allow a certain $amount per year that you can earn prior to being required to collect the different taxes (its a decent amount, around 30k/y when i last checked).

You will need to consider your local, state and federal income and sales taxes. are you considered a business? self-employed? is there a minimum sales amount you need to meet before being considered self-employed or operating as a business? If you are providing the service/item to someone in a different state/country may need to be treated differently than say locally at a craft fair

anyways... i dont know much specific to US tax law... although i did look into it at one point as I was operating a home business in Canada, that had its infrastructure (web servers) in the US. This was an intangable service lol... so yes i was quite confused as well at one point. took a lot of research to sort it all out lol
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12 years 7 months ago #157104 by Monster
What did you CPA say? I was under the same impression that you were, so this answer I'm very interested in learning about myself.


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12 years 6 months ago #158631 by Garbo
Thanks again everyone. I have a CPA who is suppose be getting back with me no later than Wednesday on the 100% answer on this. I'll keep you all informed.

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12 years 6 months ago #159964 by Prago
What was the final word on this?

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