Is there tax on services?

noodle_oo

I'm curious, do you have to pay tax on services like photography, videography, jp, etc?  I want to make sure my budget is as complete as possible!

Krystalynne21

Nope....no tax on those. 

foolforfood

I'm pretty sure my photography bill included a tax fee.

bharnett

My photography had MA tax added on.

Krystalynne21

Did your photog package include albums?? That may be why.  I mean, you don't get taxed to get your hair or makeup done.  At least, I never have!

bharnett

No, we just paid for the service & rights to all images.  Thank goodness the contract was signed when tax was still 5%! 

foolforfood

Actually, we did get taxed on services.  A few days before the wedding we decided to add 2 addtional hours of coverage, so we had to send them an additional check.  They emailed me later on and said, "Oops, the invoice we gave you omitted the 5% sales tax, can you please send us another check representing the tax owed?"

foolforfood

Ok, I wanted to make sure my photogs didn't con me into paying sales tax and found this blog entry on a photographer site.  Cliff notes:  in MA, there is no separation between the photographer's labor and the end result (i.e. photos, albums).  The entire bill is taxed.

Now, I know what I'm about to C&P may not be the most reliable, but it's all I've got at this fine hour.

The following example applies in Massachusetts, but it's worth checking everywhere, as I know photographers in MA who misunderstood it and ended up owning a LOT of back taxes. People may tell you that photography is a service and therefore that portion is not liable for sales tax - only any materials you may sell them (film, CDs, prints, etc). This is not the case (at least in MA) - photography is not a "service", if you don't supply a product (an image) there is ZERO value to your "service" therefore the image contains ALL the value. A plumber can provide a service by tightening a valve, no product need change hands. Not so with a photographer. Sales tax is charged on the end result and includes everything it takes to produce that end result.
The example that the tax office gave to me to demonstrate this years ago was the example of buying a pot. You pay sales tax on the final total sale price of the pot - as you would the total price on your photography. The potters time is not separated out, leaving you to only pay for the clay. This law may be different in other states, I can only speak for Massachusetts, but I would talk to the Dept. of Revenue to be sure and not go by anecdotal advice. I keep being told by MA photographers that they don't have to charge sales tax on the fee portion of their income and I know this to be 100% wrong.

Good luck - this is an area that you really need to be on top of, to be able to relax and enjoy the rest of the business.

foolforfood

One more thing - you should also expect to pay tax on your florals.

Krystalynne21

Thanks FFF....just like in contract law when you can't separate the goods from the service, right? lol.  Sorry for the misinformation Noodle!!

SummerBoston10

yes it is definitely taxed but some photographers (and other vendors) are quoting you a tax inclusive price.  I asked this question of my photographer and our band.  They price we were quoted is the price we will pay.  The vendor simply backs the tax out of the total cost...so for examply my photographer package is $2850...this means I am really paying $2682 for photograpy and $168 in taxes.