Charging Taxes for Online Services

1 replies
So, I'm running into a little problem. - Not really a problem yet, but curious as to what can happen - We don't charge our customers a Tax when they buy our services. We usually have a flat rate fee and we leave it at that. But apparently we're supposed to charge them a fee.

I charge our client's a fee of (just a random number to keep it simple) $1,000 dollars for a website. We then charge them a maintenance fee of $10 a month for the site.

Do you think is better to charge them taxes or leave it as it is?

So, 8% in taxes?

If we don't charge them taxes, will we have to pay extra when we pay our taxes? how does that really work?
#charging #online #services #taxes
  • Profile picture of the author brentb
    Taxes for online are a joke. I would suggest contacting a tax professional where you live. It varies state by state, what service you are offering, how much revenue and profits you are generating. So nobody on here can probably give you the right answer. AND whatever it is this year, it probably will be different next year or the year after.
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