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Taxes, taxes, and more taxes



 
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Old March 8th, 2009 Mar 8, 2009 8:40:59 AM -   #1 (permalink)
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Default Taxes, taxes, and more taxes

I know this question has been brought up a million times, but I can never seem to find an answer that makes me say "that completely makes sense and I no longer have any questions about that subject." Taxes. When to charge them for printing services, products, and design. It's very easy to work under the radar when you are a small setup. But as you grow, like I am doing now, you need to be more legit or it carries greater consequences.

My accountant tells me that we need to collect and report taxes on all the work we do. I know that is not 100% correct but I don't know enough about it to tell him how it works.

Can anyone give me a solid breakdown of when to collect and not collect taxes? And what do I need to do in order to accept tax exempt documents?
 
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Old March 8th, 2009 Mar 8, 2009 9:24:47 AM -   #2 (permalink)
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Default Re: Taxes, taxes, and more taxes

Your accountant is more right than not.

Of the 3 examples you gave; printing, products and design, 2 out of the 3 are definitely subject to tax. Only design, if billed separately and not a part of printing or design, is not taxable. It is considered professional services.

Here is the guide for FL FL Dept Rev - Florida Sales and Use Tax
 
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Old March 8th, 2009 Mar 8, 2009 10:37:37 AM -   #3 (permalink)
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Default Re: Taxes, taxes, and more taxes

It depends on your state. In some states, services are still a taxable item. I would go by your accountant's recommendation, he is the expert.
 
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