Do I have to charge sales tax if I design web site banners?

Question

One does not charge tax on services, especially if they're doing business within their own state, right?

Answer 1

First of all if I might ask, do you have a license to collect sale tax in your state?  I assume you're only provide service (not goods); therefore, you do not charge sale tax.  If you purchase material and paid sale tax to use in your job/work, you can bill your client for that expense.  You can find lots of information through your state by going to their website.

Answer 2

As far as US is concerned, there is no service charge on services . There is only sales tax  on products shipped. So lets say if you design and deliver those banners via email or any other online medium, you should be fine. On the other hand if you put in on a disk and then ship the disk, law considers that as a product and its taxed. However you are eligible to collect tax only if you are licensed to collect the tax on behalf of the government and you should only collect tax from the citizens of those states only where you business is licensed. Hope this helps.

Mark

http://www.123Triad.com