Liz Novak |
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Taxes & Photography
I recently started a photography business and registered with my county and state. My question is regarding charging sales tax. Do I have to? Do I charge on my services (time) or materials (actual cost of photos) or both? Any help would be appreciated. I live in Illinois if that helps.Thanks,
Liz
February 24, 2004
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Jon Close |
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http://www.revenue.state.il.us/Businesses/faq/rotfaq.html
February 24, 2004
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Liz Novak |
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I appreciate the link to the Il revenue department, but I have been there already. I need a straight answer not legal talk. If I am doing a portrait sitting, do I need to charge sales tax or not?
February 24, 2004
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Julie L. Curiel |
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It might not hurt to talk to an accountant to find out for sure. From what I understand and according to the accountant I talked to, you do not have to charge sales tax on your time/sitting fee but you do on any prints you make for the client since this is considered retail. Make sure though that if you are getting them printed at a lab you don't pay sales tax yourself- use your tax ID number to be exempt from that. Then you can charge your client sales tax on the prints they purchase. I hope this helps.
February 24, 2004
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Liz Novak |
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Thanks for your help. I did finally find something on the IL revenue website that says something like that. It says that it has to be invoiced separately though. That the service should be separated from the cost of the prints. How do you deal with this? How do you make the client feel like he's not being ripped off when you show the minimal cost of actually making the print vs. the cost for your time?
February 25, 2004
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