sales tax on services in mn

Status
Not open for further replies.

curious_george

New Member
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
 
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/internet-sales-tax-fairness
 
Last edited:
Status
Not open for further replies.
Back
Top