egproductions
Veteran
Thought I would post this here rather than an accounting forum since sometimes people in the industry have the best insight into the specific obligations of a production company.
My production company is registered in NJ. Naturally I have clients in many other states including NY and FL. Do others here register to collect sales tax in other states? From what I have been reading on most state tax websites, it seems that simply providing video production services as an out-of-state business, isn't enough to have nexus and doesn't obligate the seller/vendor to register to collect sales tax. I don't advertise, have employees or deliver retail products in other states so I don't think I am obligated to register. Does this sound correct? Of course I can always voluntarily register to collect.
Also, for example, if I am not obligated to register and collect NY sales tax when shooting something for someone in NY, do I have to charge NJ sales tax for my out of state clients or do I just assume they are going to be paying use tax on the services I've provided?
My production company is registered in NJ. Naturally I have clients in many other states including NY and FL. Do others here register to collect sales tax in other states? From what I have been reading on most state tax websites, it seems that simply providing video production services as an out-of-state business, isn't enough to have nexus and doesn't obligate the seller/vendor to register to collect sales tax. I don't advertise, have employees or deliver retail products in other states so I don't think I am obligated to register. Does this sound correct? Of course I can always voluntarily register to collect.
Also, for example, if I am not obligated to register and collect NY sales tax when shooting something for someone in NY, do I have to charge NJ sales tax for my out of state clients or do I just assume they are going to be paying use tax on the services I've provided?