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Microstock Photography Forum - General => Selling Stock Direct => Topic started by: asmai on April 18, 2013, 09:16

Title: US sellers direct, What you do about sale tax?
Post by: asmai on April 18, 2013, 09:16
I am only selling downloads, no physical goods, should i collect sale tax? What you guys are doing?
Title: Re: US sellers direct, What you do about sale tax?
Post by: packerguy on April 18, 2013, 09:29
It depends on your state's sales tax laws.  In Minnesota, for images that are sold and delivered electronically, no sales tax needs to be collected.
Title: Re: US sellers direct, What you do about sale tax?
Post by: asmai on April 18, 2013, 09:37
Thanks, packerguy, where do you find that kind of info? I am from Pennsylvania. That would be a great relief if i dont have to do it.
Title: Re: US sellers direct, What you do about sale tax?
Post by: packerguy on April 18, 2013, 11:34
Probably start looking here:

http://www.portal.state.pa.us/portal/server.pt/community/sales,_use___hotel_occupancy_tax/14487/taxability_lists/580900 (http://www.portal.state.pa.us/portal/server.pt/community/sales,_use___hotel_occupancy_tax/14487/taxability_lists/580900)

You may have to contact some one from Pennsylvania's Dept. of Revenue or your accountant.
Title: Re: US sellers direct, What you do about sale tax?
Post by: asmai on April 18, 2013, 12:54
Probably start looking here:

[url]http://www.portal.state.pa.us/portal/server.pt/community/sales,_use___hotel_occupancy_tax/14487/taxability_lists/580900[/url] ([url]http://www.portal.state.pa.us/portal/server.pt/community/sales,_use___hotel_occupancy_tax/14487/taxability_lists/580900[/url])

You may have to contact some one from Pennsylvania's Dept. of Revenue or your accountant.


Thanks a lot.
Title: Re: US sellers direct, What you do about sale tax?
Post by: wordplanet on May 01, 2013, 23:46
Same in NY - if it's electronic no sales tax is due. However, if I sell a print to someone in New York, my site is set up to collect sales tax. I have my site with Photoshelter and they have it set up so that you can go in and charge sales tax by location. I'm not required to collect sales tax for out of state sales.

I contacted the New York State Department of Taxation and Finance and they directed me about how to become a sales tax vendor, explained that I didn't need to collect tax on electronic downloads, and now I pay the sales tax that I've collected each year to them once a year, and get a partial refund for collecting the taxes. It takes less than half an hour to fill out the tax forms online. It also gives me a tax break (i.e. I don't have to pay sales tax on certain purchases used in connection with my photography business). You need to keep careful records (as you do with any income) but it's a pretty easy system.

I'd call your state taxing authority and ask them how it works. I found them very helpful which was rather unexpected. Like me, you might be pleasantly surprised. And once you know how it works you won't have to be concerned that you're doing something wrong. You'll have peace of mind & it's probably less complicated than you think. Good luck
Title: Re: US sellers direct, What you do about sale tax?
Post by: asmai on May 02, 2013, 09:19
Same in NY - if it's electronic no sales tax is due. However, if I sell a print to someone in New York, my site is set up to collect sales tax. I have my site with Photoshelter and they have it set up so that you can go in and charge sales tax by location. I'm not required to collect sales tax for out of state sales.

I contacted the New York State Department of Taxation and Finance and they directed me about how to become a sales tax vendor, explained that I didn't need to collect tax on electronic downloads, and now I pay the sales tax that I've collected each year to them once a year, and get a partial refund for collecting the taxes. It takes less than half an hour to fill out the tax forms online. It also gives me a tax break (i.e. I don't have to pay sales tax on certain purchases used in connection with my photography business). You need to keep careful records (as you do with any income) but it's a pretty easy system.

I'd call your state taxing authority and ask them how it works. I found them very helpful which was rather unexpected. Like me, you might be pleasantly surprised. And once you know how it works you won't have to be concerned that you're doing something wrong. You'll have peace of mind & it's probably less complicated than you think. Good luck

Thank you so much, wordplanet, very useful infos, i guess i will have to call them soon.