Do I need to reg. for Sales Tax or No? « Videomaker Community Forums

brandon0409
Member

I am getting my final ducks in a row to present all of my incorporation papers etc. for my new business.

My question is:

Since wedding videography is more of a service than a specific product, do I need to register to pay sales tax?

My mother owns a Real estate appraising company. She has been in business for over 20 years. She says that she is not required to be registered to pay or have to pay sales tax.
The appraising business works much like the videography business.

1. You provide the service of appraising the house.
2. You do the necessary work-up to produce the final product.
3. She hands them the final appraisal in a packet.

Even though the customer is receiving a product in hand which is just to show a breakdown of her work, that is not considered a retail product that needs to have sales tax applied.

Would the videography business work the same way?

Has anyone else wondered about this?

Thanks[/list]

Posted 5 years ago #
compusolver
Member

Brandon,

This is not a matter for "wondering". Indeed, the question has already been answered by your state. All you need to do is find the answer. Most states have an FAQ section with questions like this, if they have not already explicitedly answered the question within their info pages.

I recommend you try your state's tax division's web page. If that fails, then give your local tax office a call. You don't want to be sitting across from an auditor three years from now, facing penalties and interest and telling him, "But I get all my tax advice from the VM forums!". X-D

Posted 5 years ago #
Ken
Member

This could vary from state to state. My experience when I had a photography business (many years ago) was that I had to get a resellers permit from the state. I also had to charge sales tax, since I was delivering photos to my client. There was a provision where I could avoid charging tax on my services, if I broke down the items in my bill. ($40 for film, $30 for processing, $2 for slide mounts, $200 for photographic services) Then tax only had to be charged for taxable items (everything except my services).

BTW, for things like film, even though I paid sales tax on it when I bought it from the photo supply store, I also had to charge sales tax on it, since I was altering the film, by putting images on it.

But check with your state for current rules.

DISCLAIMER: I am neither a lawyer nor a tax consultant, nor do I play one on TV. :D

Ken Hull

Posted 5 years ago #
MindYourVideoBusiness
Member

In Tennessee, all I have to do is pay sales tax on the tangible media. In my case, the tangible media is the blank CD or DVD. So, I simply pay sales tax when i purchase the media and it's taken care of. Seems to good to be true but that's how I've been doing it for 7 years.

I too am not an accountant or lawyer so be sure you get the final answer from professionals in those fields regarding any legal or IRS matters.

Kris Simmons
http://www.MindYourVideoBusiness.com

Posted 5 years ago #
faqvideo
Member

It depends on your location. In the province of Ontario videographers are considered to be manufacturers and have to register to collect provincial sales taxes.

FAQ Video
Shoot-It-Yourself Wedding Video Guide, http://www.faqvideo.com/siy_book

Posted 5 years ago #
Super Panasonic
Member

compusolver Wrote:
Brandon,

This is not a matter for "wondering". Indeed, the question has already been answered by your state. All you need to do is find the answer. Most states have an FAQ section with questions like this, if they have not already explicitedly answered the question within their info pages.

I recommend you try your state's tax division's web page. If that fails, then give your local tax office a call. You don't want to be sitting across from an auditor three years from now, facing penalties and interest and telling him, "But I get all my tax advice from the VM forums!". X-D

Hank, I am new to this forum (currently seeking help with Pinnacle Studio Plus version 10.7--the menus don't work), and I have to say you give some of the most poliet, relevant, and helpful advice I have encountered on ANY of the forums that I frequent on the web!

Thanks for being a pro!

Posted 5 years ago #
compusolver
Member

Wow! Thank you. (my check is in the mail) X-D

Posted 5 years ago #