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Microstock Photography Forum - General => General Stock Discussion => Topic started by: tab62 on January 02, 2013, 13:42

Title: Sales Tax on Images Sold
Post by: tab62 on January 02, 2013, 13:42
Hi MSG Folks,

The Department of Revenue in Washington State is telling me that Sales Tax should should be collected on each one of my sold images from the Microstock companies. Does anyone know if this true? How to do I track sales from my state say via Shutterstock? This is very confusing!

Thanks for any advice on this tax matter...

Tom
Title: Re: Sales Tax on Images Sold
Post by: shotupdave on January 02, 2013, 14:13
I think someone in the revenue delta does not understand the stock business. You are not the seller of the image to the end user and there for no sales tax would be collected.
Title: Re: Sales Tax on Images Sold
Post by: tab62 on January 02, 2013, 14:18
totally agree- but WA State still wants me to file since I have my LLC via them. Weird?
Title: Re: Sales Tax on Images Sold
Post by: Jo Ann Snover on January 02, 2013, 14:31
You are not selling the image (tangible) but a license to use it (intangible). I think that isn't covered by Sales Tax even if the sale occurred in Washington State. I think the employee misunderstood.

And the sort answer is that you cannot know where your images were licensed, so even if the intangible license were covered, you can't separate out locations.
Title: Re: Sales Tax on Images Sold
Post by: sc on January 02, 2013, 14:49
You collect royalties - therefore no sales tax should be applicable.
Title: Re: Sales Tax on Images Sold
Post by: shotupdave on January 02, 2013, 23:17
In some states they have reciepts tax which have to be paid either by the store or can be passed on to the client.From hat I can see you are in a state that has a sales tax. I would ask to speak to a supervisor and tell them your situation
Title: Re: Sales Tax on Images Sold
Post by: tab62 on January 02, 2013, 23:43
All Good pointers - thanks.  :)