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Freelance Graphic and Web Design Tax?

Am I required to charge sales tax for freelance web design services?

  • I provide freelance web design services in the state of Indiana as a sole proprietor and wonder if I need to charge sales tax to my clients. I usually bill hourly for design, consultation, and everything project related. Do I need to add sales tax? I have to pay taxes, so shouldn't I charge my clients tax? Am I required to?

  • Answer:

    No, you are not required to collect or pay a sales tax in the state of Indiana if you provide a service.  For peace of mind, I would recommend you simply call them to make sure you've interpreted the below correct. http://www.in.gov/dor/3325.htm Sales tax is imposed on the following: Any retail sale (including wholesale sales) The rental or lease of tangible personal property The rental or furnishing of lodgings (for periods less than 30 days) The rental or furnishing of booths, display spaces, banquet facilities, or other similar accommodations The furnishing of certain utility or cable TV services The storage, use, or consumption of tangible personal property within the State of Indiana http://www.irs.com/indiana-state-taxes/

Garrick Saito at Quora Visit the source

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Other answers

Generally custom written computer software charges are not subject to sales tax in Indiana.  Pre-written software including delivery and installation is taxable.  Just based on your short description it does not sound like what you are selling is subject to sales tax in Indiana.

Wray Rives

To generalize the question more, for people who are not in Indiana, it really does vary from place to place. All of Canada, for example, has a sales tax on services, though some clients (out-of-country, charitable, government, Native reservations, etc.) may be "zero-rated" (exempt).

Stephanie Fysh

It turned out that I had been paying sales tax, however I wasn't collecting it from my clients. So, I was paying it out of my own pocket! Not sure how I got started doing that but hopefully I will be able to receive a refund for the payments.

David Martin

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