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Do I need to charge taxes?

by eminaymuzik, Window Shopper

  • Created: March 8, 2010, 10:03 pm
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4 comments

Hello all,

 

I am opening a new website in Minnesota that requires customers to pay a monthly fee to post their listings for rent(apartments/homes). Do I need to charge these customers in this sitiuation? its pretty much a monthly fee.

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ Do I need to pay taxes? Re: Business grants. ›

SmartTaxGirl | Window Shopper | 6/25/2010 - 10:02 am

Probably wise to contact your CPA just to make sure. But it sounds like you do not need to charge tax.

teamextension | Contributor | 3/9/2010 - 3:20 pm

Here's information whether you should collect sales taxes in MN. http://www.taxes.state.mn.us/taxes/sales/tax_information/content/startone.shtml I would consider your website an advertising website so you go to the fact sheet called '#133: Advertising - Creative Promotional Services'. This document states that your service is non-taxable. So you don't need to charge taxes.
Professional Web Site: http://www.teamextension.com

mrhelpful | Contributor | 6/22/2010 - 3:41 pm

Selling advertising is non-taxale? Doesn't that create a competitive advatage for advertising companies over other service industries?

Arai | Window Shopper | 12/21/2010 - 2:40 pm

How do you plan to bill these clients? I am sure you would not want to call them at the end of every month to be able to bill them..Here is what i do with one of my website where i do allow niche websites to add thier link to my website (PR 6) for which i charge them a monthly fee. I usually bill them on their credit/debit card (i have a online payment mode set-up on my site) and if they do not wish to provide their CC info. Then I provide them with an option to pay for the full year with 5% discounted rate. Hope this helps!