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View Full Version : Are you supposed to charge taxes?


stcroixwebs
01-16-2007, 03:02 PM
Hello I am a web host owner and I was wondering do you charge sales tax to the following:

* Local People
* Out of State People
* Out of Country People


I was unsure and are there different percentages for different people?

mripguru
01-16-2007, 04:05 PM
I believe only if they are local to you (i.e. in your state) would you charge tax. If the transaction crosses state lines, there shouldn't be any tax.

bear
01-16-2007, 04:16 PM
For hosting it varies from state to state. In NY there is no sales tax on hosting since it's a service not specifically covered. You would still owe any income tax on the money collected, however. This varies by state and locality, so it's best if you ask an accountant, as advice on a forum is anecdotal and not legally valid, typically.

taylorwilsdon
01-16-2007, 04:33 PM
There is a bill in Washington State (that I'm very against) that is hoping to require sales tax online, for border crossing transactions. Pray that it isn't enacted :-P

felit0
01-16-2007, 04:40 PM
Hello I am a web host owner and I was wondering do you charge sales tax to the following:

* Local People
* Out of State People
* Out of Country People


I was unsure and are there different percentages for different people?

In what state is your business registered? This will help determine your tax laws.

Plexi_Hosting
01-16-2007, 04:52 PM
Consult your accountant and/or tax attorney. Never rely on tax or legal advice from people on an online forum. Channeled AH-Tina for a second there :)

InfTekHosting
01-16-2007, 06:40 PM
You can research your state and local business laws for an answer, or save yourself some time and hire an accountant or lawyer to do it for you. However, I'm guessing tax law is not the forte of most people in this forum. It sure isn't mine.