Do I need to charge sales tax?

Question

I do vinyl graphics, mostly for businesses (until now under the table) do I need to charge sales tax?

What if I sell on eBay?
What if it's to a business?
What if it's out of state (Ohio)?
Do I charge sales tax for the actual product only, or do I charge sale the for the whole amount including application fees?
Do I need a tax ID from a business if they are tax exempt?

Sorry so many questions, I don't want to mess up.

well, it started as us just doing vinyl graphics for friends and for trade work, now through word of mouth we are getting tons of business and need to be legit. It's just been 3 months.

The "application fee" is what I charge for putting on the vinyl graphic. Some I put on for the customer and others I mail. The ones I mail don'y pay for the application, but the do pay shipping.

Answer 1

Talk with your Ohio State Department of Revenue.

Answer 2

To collect sales tax a company must have a permit to do so. First you are assuming that the company does not have sales tax nexus in your state, however this is irrelevant to your question since the company is acting as an agent on behalf of your state by collecting sales tax which can also be voluntary (especially common in the streamlined agreement states) Presuming that the product qualifies as taxable property, the burden is on you, the purchaser to prove to the seller that you are exempt from tax by providing valid exemption/resale documentation in your state. Even if the company did not charge you tax and you are the end consumer of a taxable purchase, you must pay use tax to your state. Disclaimer: The above information is not intended as tax advice and should not be used for any purpose.

Answer 3

If your state has a sales tax on what you sell, then yes you need to get an ID from your state to collect and remit taxes from sales you make in your state, whether you are selling to a business or to an individual, on ebay or in person.. They can tell you what is taxable. Not sure what "application fees" are in your line of business, but would probably be included. You wouldn't collect the tax on Ebay sales to out of state customers, but if an out of state customer walks into your place of business, they'd pay the sales tax.

If a business is tax exempt, they'll have a tax exempt number that they'll provide to you for you to keep on file - you might want them to give you or fax you their tax exempt form.

Answer 4

The first question is "Do you have Sales Tax in Your State?". If so you should contact you Local State Government Tax Agency. They will inform you what the rate of taxes are to be collect and paid to that state. Also they will answer all of your question and may have a class that you may go too. So you will be within the state laws to operate your business in a legal matter.

Answer 5

Whether or not it's on eBay is irrelevant.

To a business: depends on the use...yes if they are the final customer, no it they are going to resell it (then they will need to charge sales tax when they resell it).
In any state you operate out of you will need to charge taxes (so if you open a facility in another state...that will be 2 states for taxes).
For out of state, it depends. If you are shipping it out of state, then you don't need to charge sales tax. Generally, if they are arranging shipping it's subject to your local sales taxes. If you are installing it somewhere else, it's subject to the local sales taxes of where you are installing it at (including municpal/county/state taxes).

Not sure about needing the tax ID, but I'd do it as a CYA (just in case you're ever audited it's always good to have clear records).

Answer 6

I sell stuff on ebay all the time...I charge sales taxes in my local state. Technically you only charge taxes if u have an business license. Cause u have to pay business taxes. but if u dont have one u can still do it for extra cash...(ie ebay). If u have a business u should charge taxes. cause u will have to pay them at the end of the year. Only if u have the license, then u are official as far as the government is concerned. but if uncle sam don't know about it. He not going to bother you

Answer 7

You need to contact your state. However, if you are a business, then yes. Even eBay.

Generally, yes, if you sell to an end-user who lives in your state, you charge sales tax to them. Since you have no nexus in other states, you don't charge sales taxes to their residents. (You do keep track of total sales, though.)

"I don't want to mess up" yet you admit that you've been doing this work under the table so far. You've already messed up.

Answer 8

sales tax is the hugest load of BS and i hate it because i think i have the exact amount but i don't. but we need it so, just add tax into the price.

Answer 9

probably but i am not going through the trouble of looking it up. sorry. you could probably call irs customer service.