State Sales Tax?

[terri33inne]

This is for those who live in a state with sales tax.

I use mpix through zenfolio for my clients to order prints... as an online vendor w/out a storefront in my state MPIX doesn't have to collect sales tax (although the state is trying to change that).

My question is do I need to charge sales tax on my print orders even though they're being fulfilled by an online vendor who is out of state? Although to the client they're doing this through 'my' storefront. Do you collect state sales tax?

Nope.

Mpix or Zenfolio should handle that, if applicable. However, you do have to pay income tax on the profit.

[Niresangwa]

Specifically, I know Zenfolio handles sales tax on print sales, if you direct them to do so.

Furthermore, be aware that some states do expect sales tax on your non-tangible sales as well, such as session fees. Wisconsin is one of them, but check your own state regulations.

[terri33inne]

Thank you for the feedback... I'm all set with reporting my profit as income for that piece... I just think this is a gray area on the sales tax... I should speak with an accountant or tax attorney I guess.

@Photoboothguy Zenfolio leaves it up to me as to whether I want to add the sales tax or not, and then it's up to me to pay it quarterly to the state.

Originally Posted by terri33inne

Thank you for the feedback... I'm all set with reporting my profit as income for that piece... I just think this is a gray area on the sales tax... I should speak with an accountant or tax attorney I guess.

@Photoboothguy Zenfolio leaves it up to me as to whether I want to add the sales tax or not, and then it's up to me to pay it quarterly to the state.

Ah, I forgot about that. Technically, you should be charging sales tax for sales made in your own state, but I wouldn't worry about the other 49. Just hope your state doesn't have a bunch of county taxes too (major PITA for small businesses).

[bhursey]

Ya you can set zenfoleo to collect the tax for your state. You then will have a state tax id and you will write a check for the text you collected to the state monthly or what ever your time is. Its a PITA but its required.. Like mine is 7%