Sales Tax
 

Question on itemizing sales tax on contracts/reciept.

When I got my business tax id here in Los Angeles, I received two types. I got one for website services or what they consider multimedia services and a separate one for the photo/video portion of the business.

I was told that I need to charge taxes in the photo aspect of the business since I'm delivering a tangible item, the printed photos themselves.

For video, do you all charge sales tax since you are handing over a tangible item on DVD?

Thanks for answering this newbie question.

This is one of those questions where you simply MUST talk to a local attorney or tax accountant familiar with both your business situation and the tax regulations in your specific location. They're the only people who can give you any reliable information..

YES! Don't fool with the CA State Board of Equalization. Charge CA sales tax.

I called them myself and was told very directly.

Yes! to repeat what Justin said. I have never had a client that had a problem with this... even though they may have to pay a hundred or so dollars just for the tax.

Besides, by charging tax, it helps your image - in that you look established. Fly by night operations don't charge tax.

Thanks for the response everyone. I looked over some contracts of established local video services and found they itemized sales tax as well. For my current gig this weekend, I absorbed the sales tax but itemized it on the contract so they know I'm a serious law abiding service provider.

I added fine print to my ad to state, "plus 8.25% California Sales Tax" so I don't have to absorb it in the future.

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