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MenuShould I collect NY sales taxes for online marketing and web development services offered to NY clients?
As a Delaware LLC based out of NYC, should we collect sales taxes from NY clients?
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Generally, the transfer of tangible personal property is the trigger for a sales tax event. In this case, it may be necessary to review the various aspects of a typical transaction to determine if any portion thereof would be subject to sales tax. However, generally speaking, receipts from the sale “Marketing”, "Media Placement Services" and "Web Site Networks" are not subject to State or local sales and compensating use taxes provided your organization does not sell or otherwise transfer any tangible personal property to its clients in conjunction with these activities or perform any services otherwise taxable under Section 1105(c) of the Tax Law in conjunction with these activities. (See, Advertising Agencies, Technical Services Bureau Memorandum, June 10, 1983, TSB-M-83(16)S.
For additional guidance, you may also want to refer to Publication 750, A Guide to Sales Tax in New York State http://www.tax.ny.gov/pdf/publications/sales/pub750.pdf.
I hope that you find this information useful.
Shawn Powell Joseph
Reference
TSB-A-97(43)s
Sale taxes are only collected when you have sellers permit in the state you are conducting business in. Another condition to collect sales taxes is to sell a product and you sell services.
Services provided such as the ones you listed do not collect sales taxes in any state.
Hope this helps, if you have any other questions make sure to give me a call :)
Yes you have to
Whether you are required to collect sales tax on online marketing and web development services that you offer to clients in New York depends on a few factors, such as whether you have a physical presence in the state and whether the services you offer are subject to sales tax.
Generally, if you have a physical presence, such as a retail location, warehouse, or office, in New York, you are considered to have nexus in the state and are required to collect and remit sales tax on taxable products and services that you sell to customers in the state.
However, even if you don't have a physical presence in New York, you may still be required to collect sales tax if you meet certain threshold, such as making a certain number of transactions or dollar amount of sales in the state. This can vary from state to state and you should check the specific laws of New York.
The services that you offer may or may not be subject to sales tax, as this can depend on how the services are classified. In general, services are not subject to sales tax, but it is also possible that the state of New York could treat services as taxable, again, you should check the specific laws of New York.
I would recommend consulting a tax professional or checking the website of the New York Department of Taxation and Finance to determine whether you are required to collect sales tax on the services you offer to clients in New York and what your obligations are.
It is important to be aware of tax laws and regulations to make sure you are compliant and avoid any penalties from tax authorities.
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