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    sales tax on services in mn

    Jurisdiction / State: Minnesota

    I am starting a background check company in MN.
    We sell to companies directly and on the internet to whom ever.
    We sell a service and information not a "good".
    Do I need to charge sales tax?
    Do I need to charge only to certain states?



    Thank you for your help

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    I do not know the laws in MN but I have never seen sales taxes on services.

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    curious_george (10-01-2009)

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    Quote Originally Posted by curious george View Post
    I am starting a background check company in MN.
    We sell to companies directly and on the internet to whom ever.
    We sell a service and information not a "good".
    Do I need to charge sales tax?
    Do I need to charge only to certain states?

    Thank you for your help
    You will not to need to collect any sales tax from anyone outside of MN.
    The purchasers may legally be required to report the purchase for the purpose of paying the proper "use" tax.
    State sales taxes are legally termed sales and use taxes in their general statutes

    However, if you have a place of business that is open to the public, meaning a physical location where they can actually enter to conduct business, you may need a whole host of licenses and permits, as well as collecting sales tax, to be 100% in compliance with all local and state regulations.

    That said, home-based businesses, conducting only internet based sales, have been exempted from sales tax collection requirements.

    http://www.newrules.org/retail/rules...s-tax-fairness
    Last edited by BaBaBooey; 10-03-2009 at 02:19 PM.

  5. The Following User Says Thank You to BaBaBooey For This Useful Post:

    curious_george (10-06-2009)

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