When it comes to sales tax, you need to ask yourself 3 questions. We will walk you through those questions below:
To determine if you have Nexus, tell us if any of these scenarios apply to your situation.
Your business is located in Washington DC AND you performed the shoot in Washington DC AND the client lives in Washington DC
You travel to Washington DC to shoot AND the client lives in Washington DC AND they receive their physical or digital goods in Washington DC
Your business is located in Washington DC AND you travel out of state to shoot AND the client lives in Washington DC AND they receive their physical or digital goods in Washington DC
<aside> 💡 NOTE: Sales tax is based on where the sale happens. So if the client receives their goods in Washington DC, then you need to apply Washington DC sales tax rules to the sale.
However, there are some states where traveling there just for a photoshoot could create a sales tax nexus. This will need to be researched further for each particular state to make sure that you won’t be required to register and collect sales tax in another state.
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<aside> ⚠️ Washington DC business with an out-of-state client If your business is located in Washington DC AND the shoot is in Washington DC AND your client lives out of state AND you’re shipping their items to them out of state This falls under Economic Nexus By State rules (make sure to review)
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