Sales Tax with Wedding Packages?

[JDrake]

My husband recently talked to some tax people and wanting to do the right thing asked if we owed sales tax when I have a client sign up for a wedding package. He was told that yes, we would have to charge sales tax on a wedding package for my services if I provided anything other than shooting their wedding in the package... and they would owe it on the entire amount. at 9.25% sales tax... that isn't small change when you are talking wedding photography!

This doesn't seem right to me... I have never heard anything like this and I didn't pay taxes on my own photographer for my own wedding... can anyone give me advice on how to handle this? What do other photographers do with their clients and the issue of sales tax? (I live in TN btw). I wanted to hear from some other photographers to find out what they do when they charge people for their services and provide other items with the packages they sell their clients (not necessarily wedding photography).

[heatherfeather]

My husband recently talked to some tax people and wanting to do the right thing asked if we owed sales tax when I have a client sign up for a wedding package. He was told that yes, we would have to charge sales tax on a wedding package for my services if I provided anything other than shooting their wedding in the package... and they would owe it on the entire amount. at 9.25% sales tax... that isn't small change when you are talking wedding photography!

This doesn't seem right to me... I have never heard anything like this and I didn't pay taxes on my own photographer for my own wedding... can anyone give me advice on how to handle this? What do other photographers do with their clients and the issue of sales tax? (I live in TN btw). I wanted to hear from some other photographers to find out what they do when they charge people for their services and provide other items with the packages they sell their clients (not necessarily wedding photography).

I don't know what it is like in other states, but in AK, there is no State sales tax. But there is city sales tax. So, I only pay sales tax in the city where the service is being performed- where the wedding/ reception is at, or if I am delivering a product within city limits. There is also a maximum tax per sale here, (which is $12.50- practically nothing)

If I were you I would just check with your city & state finance department and find out what the laws are there. Go to the horse's mouth.

[Howard Barlow]

In Texas, yep.

[Art Scott]

In years past in Ks I had to pay sales tax (city and state....it is combined here) for wedding and portrait shoots......so I altered my packages to define that for so many $ I would shoot the wedding consisting of so many hours total and all prints and albums were extra or I'd give it to them as a wedding gift at no charge..............but if your services are for anyting besides labor then Isuspect you'd have to pay sales tax......but not being a tax lawyer I am not qualified to be giving this info out for anyone to make business decisions on:D:D:D :rofl

[Sam]

You, of course need to check with your state tax people. Here in ca photography services are not taxable, but prints, Cd's, DVDs are. The answer is to break out the service from the prints, (deliverables) on your invoice. If you package it up, and invoice it as a package with one price then the entire amount is taxable.

Sam