Tax is freaking me out.

Discussion in 'General Shop Talk' started by squee, Aug 14, 2010.

  1. squee

    squee TPF Noob!

    Aug 12, 2010
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    Chicago, IL
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    I searched the forum for an hour trying to find this answer, so if the regulars here notice I give my heartfelt apology.

    Mkay. Two simple questions:

    1. When one of my customers orders prints, I order them through Mpix and have them drop shipped to the customer. I pay sales tax to Mpix. I charge Mpix's Print Price x2 + half that result. Should I be charging my customers sales tax if I paid sales tax on the prints already?

    2. Does anyone know if Illinois requires you to charge sales tax on the sitting fee?

    I would contact my business advisor but it's nearly 11pm and I have a customer who needs me to process their order by tonight. :er:

    EDIT: That formula for what I charge is because I do a 'buy one get one half off' deal. I only sell prints in equivalents of 8x10 sheets.

  2. KmH

    KmH Helping photographers learn to fish Supporting Member

    Apr 9, 2009
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    Visit the web site of Illinois Department of Revenue.

    You should check with your accountant regarding what services/products you are required to charge sales taxes for where you do business.

    The sales tax is Illinois sales tax and yes you should charge your client for the tax usless you want to pay it yourself.

    By the way, I markup Mpix prints between 500% and 7500%, depending on the size, and don't drop ship so I can check the print quality before my client sees it. Mpix is a great lab, but stuff happens, KWIM.
    Last edited: Aug 15, 2010

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