HI All. For those of you who have a US website design business ? Especially those that are registered with their state and county, do you charge tax for your service? I am here in NY and not sure if I have to tax services, considering I am not really selling anything tangible. Just offering services.. I just want to make sure.. Please let me know.
No, you do not have to charge sales tax for services, and even when selling online you only have to charge sales tax when someone LOCAL (i.e same state) buys from you online.
Check with the taxing agency associated with your state. In Texas, web design and development is taxable.
Do you mean Sales Taxable in Teaxs? or do you mean Income Tax? Its always income Tax but I'm surprised that web development has sales tax associated with it.
Yes, Texas charges sales tax on web design and development work for work done for someone in Texas. Sales tax varies from town to town since some towns charge sales tax as well. In Texas we can file online.
I believe Maryland, US recently enacted legislation requiring computer service providers to charge st sales tax. I have not looked into thoroughly. Thank you for reminding me. Q...
Here in California, one of my clients who did digital design had to collect and pay sales tax. I would think that web design might be the same. Check with your Dept of Revenue for the laws in your state.
Thanks guy.. I need to find this out. I really thought Income tax is a must but was not sure with Sales Tax. It looks like I need to verify this.
Technically, in Michigan you are suppossed to pay sales tax on all online transactions, but why do I care?
I'm not sure where some of these people live, but in my state, all services are taxed if the service is locally provided. If I go to the lube shop to have my oil changed, even though I provide my own oil, I'm charged a tax for the service (labor) of draining/filling... The same applies for web-design here, too. If I charge someone $50, their total is $53.75.
I think its really different on which state you live on. I remembered that when I was still in Florida, some labor does not make you pay taxes for example, if you get a haircut. Its a flat charge.. Like state of California, they dont have taxes on groceries or necessities. It is really different per state.