Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Curious about taxes on hosting ?

[RasnCain]

This might be a real simple question, but as a web hosting provider must you be concerned with taxes on what your selling?

I am new to the business, started out recently just because a handful of friends wanted something better and cheaper. Starting to grow amazingly into something bigger and better, and in doing so I am worrying now about running this professionally as a business and not so much as a side thing for friends.

I have to admit, I am just a techie have been and will be a unix admin and WAN guy for years... I dont know the business aspects that well.

Any info one could provide would be greatly appreciated.

[Brad @ Xiolink]

I am assuming you are asking about sales/use tax vs. income tax. Most states do not charge a sales tax on a service. However, Texas does and there may be others that do. Check with a tax professional familiar with your state laws.

[Fujiwara Takumi]

consider this fact for wisconsin:

if i sell a computer i get knicked taxes. if i sell a set of components at component prices with like a "$200 construction fee" i wont get taxed. its all in your billing. if you sell a website you could be taxed, if you sell web design services you wouldnt be. all taxes == creative gray areas

[Reality Hosting]

In Canada, (ontario specifically) I'm required by law to charge GST to all Canadian customers, but not international customers. I don't have to charge PST because my servers are located outside of Canada.

[DaBoss]

Our servers are located outside of Canada. Merchant also outside Canada. We do not collect GST or PST from clients, and also not claim for our expenses inccured. Our clients are mostly from US and foreign and they do not understand taxes.

[Akash]

Yep....wisconsin business laws are screwy.....I think texas is the only state to tax services? Anyone else get taxed in other states?

[Woogs]

I have heard some people say yes and some have said no when it comes to Pennsylvania. The PA Department of Revenue did not sound to sure with their answer either when it came to web site design and hosting. Does anyone have an answer for PA?