sales tax on services in mn

Discussion in 'Taxation' started by curious_george, Sep 30, 2009.

Thread Status:
Not open for further replies.
  1. curious_george

    curious_george New Member

    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    0
    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
     
  2. jharris352

    jharris352 New Member

    Messages:
    2,837
    Likes Received:
    343
    Trophy Points:
    0
    I do not know the laws in MN but I have never seen sales taxes on services.
     
    curious_george likes this.
  3. BaBaBooey

    BaBaBooey New Member

    Messages:
    47
    Likes Received:
    5
    Trophy Points:
    0
    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: Oct 3, 2009
    curious_george likes this.
Thread Status:
Not open for further replies.

Share This Page