Topic

Messages

NYC Sales Tax

Recently I have received contradicting views on whether or not we should be charging New York City sales tax on Web Design, and related costs.

If anyone has any conclusive policy on this I would be grateful if you could provide it, how long you've been invoicing this way, and whether you received your understanding from an accountant, lawyer or NYC directly.

Many Thanks,

Joseph Notovitz Notovitz Communications, Inc.

I understood from my accountant that it incurs no sales tax.

Steven O'Neil

We charge NYC tax on web design. It is not any different from a creative or design charge, the criteria being that you are producing a deliverable, even if its virtual. The work involved to get it to that form is a taxable event.

Christopher Staples Sun & Moon Marketing Communications, Inc.

It is interesting that when asked if one charges sales tax on Web design, 50% seem to charge and 50% don't charge. I think we should contact the state of New York and ask them for an official answer.

Joseph Notovitz

In CA any work that is transferred via "remote telecommunications" ie. modem, is non-tax. This includes Web site work and any design transferred to a client via email or internet. The reason being is that nothing tangible is produced, therefore nothing to tax. It's nice for the client. NYC may be similar. I would recommend writing to the state to get a copy of the regulation.

Shannon Ellis Business Manager Tackett Barbaria Design Group

when doing a freelance job for a client that has their business registered in a different state (their out of state address appears on invoice) we don't charge NY sales tax, correct?

thanks

Pela Chrum