jschmidt — 2011-08-23T15:15:20-04:00 — #1
I have been told by the state comptroller that "web design" is taxable, but "custom programming" is not. What do you all do? I was told by someone else that a cpa would be able to set me up in such a way that sales tax will not need to be charged. What do you all do?
force — 2011-08-31T16:58:43-04:00 — #2
The former could be considered a deliverable product, the latter could be considered a service. That's just my best guess, though.
tomdude48 — 2012-04-23T21:25:04-04:00 — #3
Unfortunatly the Comptroller uses the data processing rule to tax anything related to the web, even custom programming. This article provides a full explaination:
jestep — 2012-04-24T09:05:37-04:00 — #4
What state are you in? This definitely varies state by state. No matter what the case, I would be extremely reluctant to try and circumvent what your comptroller has told you, especially on ambiguous definitions such as programming vs web design. Realistically, you should have some taxable and some exempt sales as you will most likely be performing both programming and design. The cleaner your records in showing how a customer was billed and exactly what they were billed for, the better off you are. The state is going to interpret in their favor if there is ever any question to what you are doing.
technobear — 2012-04-24T12:48:27-04:00 — #5
I don't think there's anything to gain from resurrecting such an old thread.