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Thread: Online Service

  1. #1
    Registered User
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    Join Date
    Apr 2009
    Location
    New York
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    92

    Default Online Service

    I am starting up an online service. It is subscription based.

    Do I need to collect sales tax?

    I know it is claimed as income.

    Thanks

  2. #2
    Mr. Tax Man
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    Join Date
    Aug 2008
    Location
    Rhode Island
    Posts
    1,336

    Default

    Services are generally not taxable. It depends on the state, as some DO charge tax on services. It may also depend on the TYPE of service as well.

    For example: In CT, services are taxable. In RI, they are not.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

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