collecting tax

Heres a question. A person from NJ is getting married in VA, and as far as I know, they will be going back to NJ after the honeymoon, so the pictures/album will be mailed to her in NJ. Do I collect VA's 5% tax or no?

I asked my accountant *income tax accountant* and he wasnt sure about out of state people. I figured people here may have an experience with that.

get a better accountant

Swap WA for VA and I can tell you that an item bought in WA but shipped out of state (need bill of lading or tracking information) is not taxed in WA. Now, the question to me is whether they paid for a service in state, that is different than buying a tangible item.

It doesn't sound like your accountant is much interested in some of the details of business accounting.

msfvirginia wrote in post #10302710
Heres a question. A person from NJ is getting married in VA, and as far as I know, they will be going back to NJ after the honeymoon, so the pictures/album will be mailed to her in NJ. Do I collect VA's 5% tax or no?

I asked my accountant *income tax accountant* and he wasnt sure about out of state people. I figured people here may have an experience with that.

As Karl said, get a better accountant--one who will do the homework you've hired him to do for you.

State laws will vary. In my state, it depends on which state my physical butt is in when I make the "obligation" (i.e., "seal the deal"). If I take a call from a client in another state and schedule it on the phone, then I've made the "obligation" in my state and I'm required to collect taxes on it. It doesn't matter if I went to the other state for the session and delivered the products to the client in that other state--what matters to my state is where I was sitting when I made the obligation.

OTOH, if I make the obligation while at the client's house in the other state, shoot it in my state, and have the client come to my studio to pick it up...I'm not supposed to collect taxes on it (theoretically, the client should pay a "use tax" if required to her own state).

But as I said, states vary...your accountant has to give you information pertinent to your own state.

And some states tax goods and service while others only tax goods.
(Prints are goods, photographers time is service).

the thing about these questions is...say someone here tells you to do something. you then think its kosher and do it, but in the process find out you did it wrong and maybe sometime down the line you pay for it. or seek who gave you that stupid advice in the first place...ya see why its a bad idea to ask tax and legal advice online?

lauderdalems wrote in post #10305130
And some states tax goods and service while others only tax goods.
(Prints are goods, photographers time is service).

My state taxes goods, not services. Furthermore, my state has a basic presumption that if a photographer does not itemize his fee, 10% of the fee is goods and 90% is service, so the tax is figured on only 10% of the total fee.

But if the photographer does itemize goods--prints, frames, et cetera--then that figure is taxed. Obviously, if a client purchases a $500 print in a $250 frame, he's better off being taxed on 10% of $750 than 100% of $250, so I never itemize my fee.

But it's only photographers that come under this weird little addendum to the tax law. That's why you need to talk to a good accountant in your own state.