Maine Photographer Maine State Sales Tax Collection | Maine Wedding Photographer
One of the most frequent business questions we hear is about Maine Photographer Maine state sales tax collection.
This graphic, not official but believed 100% accurate according to the Maine Revenue Services Sales, Fuel and Special Tax Division Bulletin #3 for Photographers and Photofinishers, last updated April 11, 2016.
As is seen in the above graphic, it’s a pretty straightforward flow in most typical scenarios.
Maine Photographer Maine State Sales Tax Collection Key Points
Typically, sales tax IS collected if there will be ANYTHING delivered. And, importantly, that includes digital files and digital downloads AND that delivery happens in Maine.|
It’d be very unusual that nothing at all would be delivered. One example would be a family comes to a photographer’s studio and pays a sitting fee but does not end up purchasing anything. The sitting fee, in this case only, is not taxable. Continuing on this example, however if the customer later changes their mind and buys anything, then the entire sale including the original sitting fee is taxable.
Moving from this point, and since we now know that most all photography work will be taxable because most often something indeed is delivered, the final determinant becomes where the product will be delivered. It’s very important to know that the term ‘delivery’ includes digital downloads.
If the product is delivered within Maine, Maine State Sales tax is due. Accordingly, the current rate is 5.5%.
If the final delivery of the product will happen outside of Maine, NO sales tax is collected. Any sales taxes due will be the responsibility of the client/customer.
When delivery is in Maine, it does not work to try to foil the system and “split up” the services portion of the work, such as the sitting fee, and charge sales tax on just prints or files. The ENTIRE purchase amount is taxable per Bulletin #3.
The folks at Maine Revenue Services Sales Tax Division welcome your question for other situations at (207)624-9693. Photographers can register on line to establish an account here under Online Application for Tax Registration.