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Charging taxes

by ronniecrop, Window Shopper

  • Created: January 14, 2011, 1:37 pm
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3 comments

I have a small business I just started. I edit and duplicate old videos to digital formats. I work out of my home and am licensed. I shipp all over the country and do local business as well. What do i charge for sales tax? Both locally and when i ship. Also, do i charge tax on labor rates are just the materials? Please help, I am so confused live in Washington State, Clark County but outside the city limits of Vancouver.

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ New Business, No Activity Tax Question Internet Business Tax Questions ›

LRoberts | Window Shopper | 2/4/2011 - 5:02 pm

Based upon the information available at http://dor.wa.gov/content/FindTaxesAndRates/RetailSalesTax/ you must charge sales tax on the finished product. The finished product will include the cost of materials and your labor. I hope this helps. Kind Regards, Lee Roberts Shopping Cart Software -- This post was edited to remove a hyperlink. For posting guidelines, see the Community Best Practices: http://community.sba.gov/community/discussion-boards/introduction/welcom....
Professional Web Site: http://www.ascendercart.com

jbeidle | Contributor | 1/14/2011 - 6:13 pm

If you are delivering a physical commodity you will need to pay sales tax to that state. If you are delivering electronically you will have no sales tax to pay.
Professional Web Site: http://TaxPanningStL.com

mian | Window Shopper | 1/18/2011 - 5:20 pm

Show Replied Text…
If you are delivering a physical commodity you will need to pay sales tax to that state. If you are delivering electronically you will have no sales tax to pay.
Does that mean if he sets up a website or ftp for his clients to download the products instead of shipping them, he'd save the tax. Good to know. That seems silly though, from the taxman POV. Broadbands are so fast these days, setting up a video on demand website won't pay any sale tax? But lending DVD would? hm...