Sales tax on DVDs sold??

[Grisnjam]

I am getting my little side video business going and I am wondering if I need to charge and pay to state and local governments (in Austin, Texas) sales taxes on the physical DVDs I sell people.

I know I don't for services provided which is the the bulk of the payments I receive but what about when I charge $10 a copy for DVDs?

Thanks,

 

[David Saraceno]

Contact your department of revenue for this question.

My guess is yes, because you are selling a fungible item rather than offering a service.

 

[ggrantly]

If you are doing work for hire, there is a good chance that is a service you would charge sales tax for.

Grant

 

[Taky]

For service only, you don't need to collect sales tax. In California, for tangible products delivered, together with the service that is required to product that product, sale tax applies too. There're always ways to work around.

For example, if you have one contract to provide service and final product is delivered over the web, no sales tax. Then you have a separate contract (dated after the first contract) about delivering DVDs, then you will need to collect sales tax for sales make in state. And for those sales if you mail DVD to another state, no sales tax.

In CA, I have to register with the Board of Equalization to obtain a seller permit, register an account, eFile sales tax collected quarterly. There're different sales tax rate in different county. If all sales are done through the Internet, the way to calculate tax is different too. It's just so complicated.

That is what I understand doing business in California, not sure if there's any different in Texas. I went to school in Abilene, TX.

 

[Mark Williams]

Here you go. This publication should get you started http://www.window.state.tx.us/taxinfo/taxpubs/tx94_105.pdf
If you sell via the internet there is a section on "internet sales" If you travel and sell then you could be considered according to their definition as an "Itinerant Vendor".