Traveling OUT of Arkansas: If your business is located in Arkansas, but you are traveling to shoot in another state, please review the sales tax requirements of that state.
Traveling INTO Arkansas: If you are from another state and are traveling into Arkansas to shoot, please follow the questions below to find out if you need to charge sales tax in Arkansas.
When it comes to sales tax, you need to ask yourself three questions. We will walk you through those questions below:
If your business is located in Arkansas and you are shooting in Arkansas, you have nexus in Arkansas.
If you are traveling from out of state to shoot in Arkansas, and your client receives photos from you in Arkansas, you have nexus in Arkansas. (see Traveling to Shoot in Arkansas? section below for when you need to register for sales tax)
The following items address tax where everything is happening in Arkansas. If you have an out-of-state client, see the orange section below that talks about out-of-state clients.
This specifically refers to digital photos transferred digitally over the internet. Please note any digital images transferred via physical devices like USB drives, CDs, etc., are taxed as physical goods, and all physical goods are taxable.
Arkansas taxes sales of tangible personal property and specified digital products. Note that Arkansas taxes photography services, so paying someone to take photographs is taxable, including any charges for prints or digital files.
This covers anything physical you can touch, such as physical prints, albums, etc.