Product vs. Service Taxes

**ACMAir** · 11-09-2009 10:59 PM

Can someone please explain the regulations in regards to taxation, for selling products, and providing services? Are services taxable? I know products are, but would a logo design be a service or a product? I mean, its a file, however, you pay for the designing, not the file. Which of the following does designing fit under?

Thanks

**peteVA** · 11-10-2009 02:09 PM

This varies by state. Some tax services, others don't. Same with shipping charges. Check with the CA Board of Equalization website, if you need to collect - not charge, you COLLECT - taxes, it will tell you there.

BTW, not collecting does not make you not responsible. If what you are selling is taxable, you owe the taxes, whether you collect or not. Should they audit you, you will pay the taxes, a fine and interest.

**ACMAir** · 11-10-2009 07:11 PM

Thanks peteVA. I will check with the California Board of Equalization. When they ask for the taxes, what paperwork do you need to present?

**rdc** · 11-12-2009 04:38 AM

The general rule, when addressing product vs. service, is which one constitutes the majority.

Web/graphic design generally falls under services; and yes, these are taxable at all levels (this is income).

**StealYourDreams** · 11-12-2009 06:41 PM

Originally Posted by rdc

The general rule, when addressing product vs. service, is which one constitutes the majority.

Web/graphic design generally falls under services; and yes, these are taxable at all levels (this is income).

I believe the OP is asking about sales tax.