OT: State Sales Tax.

[Dizzi45Z]

I know this is wayy off topic, so I hope that you don't get annoyed. I'm not sure where else I could post this to get the most response by professional recording studios than here.

I'm just curious. How many of you Recording Studios in the United States have to charge Sales Tax for your services? While working on Utah Taxes, they have a dedicated category labeled, "Multi-Channel Video and Audio Services" where they ask you to pay Sales Tax on your Gross receipts. Isn't this strange? I thought that services aren't subject to Sales Tax in the United States. But maybe it is up to the State to decide.

Just curious especially if anybody is charging Sales Tax. I've never seen a studio charge Sales Tax in the US, but I haven't been to that many.

[Dizzi45Z]

Okay, so I found out that "Multi-Channel Video and Audio services" has nothing to do with Recording Studios (Hurray!). I'm still curious if any studios are charging sales Tax. But the moderator can delete this thread if they would like.

[Bentley Ferrari]

Utah, like most states, doesn't require sales tax on services. The only exception is if they specifically list a service in their sales tax law.

[subwoof]

No taxes on services, only on materials (blank CD's, DVD's etc).

[audioluche]

You guys are so lucky...
Here we have provincial taxes and a federal taxes.

15% more for the client...Ouch

[iplaydat]

Originally Posted by audioluche

You guys are so lucky...
Here we have provincial taxes and a federal taxes.

15% more for the client...Ouch

Yes, we are lucky - that is one reason Utah has been listed in several recent national surveys as a good place to start and do business! I also run and own a one man software services S Corp here in Utah, and I do not charge sales tax for my services. I do not sell any goods, just services.