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*arobertson62282* - sales tax

Ok...so the CPA called me back and here is what he told me:  it does not matter when the contract was written, all that matters is when the product is supplied to the client.  For example, I own an interior design and remodeling company (specializing in kitchens) so the cabinets, countertops, sinks, tile, etc. that were delivered in the last couple months get taxed at 6.75%.  However, the faucet and light fixtures that are not here yet and won't be until after September 1st will be taxed at the new 7.75%!!!So...I am not sure how photographer contracts are written but regardless, you should not be taxed on the actual "work" to take the pictures bc that is considered labor and labor is not taxable - but you are taxed, I assume, on the albums and actual photographs...anyways, according to the CPA and from my understanding - if you previously received any albums or pictures, they would be taxed at 6.75% and any albums and/or pictures that you received after September 1st will be at 7.75%.  I hope that was not too confusing!!  If it was...let me know and I will try to reword.  I understand what he was saying but not sure if I know quite how to explain it.  HTH!

Re: *arobertson62282* - sales tax

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    edited December 2011
    Yeah, that's what I thought. I still haven't heard from our photographer but she didn't break out the cost on the albums, prints, etc. The way it looks, it'll basically be $10 more, so we'll submit that in our final payment. Thanks for following up on that though - very helpful.
    BabyFetus Ticker
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    bekalinzbekalinz member
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    edited December 2011
    no problem!  glad yours is only a difference of $10...although I'm sure every little bit counts! I have clients that spend $30-40K plus on kitchen products - so that silly 1% is a difference of hundreds!  rather annoying!  but nothing I can do :) 
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