Anyone in Massachusetts? Video Production charge sales tax?
by Grant Wilber on Jan 27, 2013 at 6:21:07 am
In my first year of business and trying to figure out the tax stuff. From what I've read online, charging sales tax for a video you create and post online, varies from state to state and is sometimes a blurry line. There is no tangible end product involved.
Which concludes that yes a video production must charge sales tax. But it feels outdated as there is no mention of online delivery and refers to using tapes and disks as the end product. Or perhaps it does say that anytime you create something for someone then no matter what it is, its considered a tangible product? Such as said in this line:
Applying this rule, the Supreme Judicial Court ("SJC") has determined that sales tax applies to the transfer of "an end product conforming to [a customer's] specifications."
I know people say 'ask your CPA', but I feel like this isn't a clear cut thing and want to get my facts right before asking. Plus I dont really hear of production companies charging sales tax for their videos - so that makes me wonder too. Is there anyone who has worked in Massachusetts creating videos for clients and are you charging sales tax for videos that go online and a physical copy is never 'sold'?