Shoot and online only.......no tax.
Bride purchases albums and goods later, taxable.
Agent admitted its a big loophole. Write up wedding contracts for shoot and online only. Non taxable. Then when bride "buys" her products "afterwards" thats taxable. Lower taxes for client.
OR.....tax entire all inclusive package where the state reaps more taxes.....
I think you have to be careful how you handle that, knowing that sooner or later everyone with a resale certificate gets audited. For instance, if I shoot a job for Honeywell, then a year and a half later they order $15K worth of prints for their offices worldwide, there's not going to be a problem separating the two, but if I'm offering a product - a wedding, which is typically paired with an album and prints immediately after, you may or may not have a problem with that scenario. If you're providing services that are normally associated with physical prints, my guess is that the more time there was between the photography and the print order, the more likely your claim of separate jobs would have of standing up. Of course, this is only conjecture on my part base on common sense, and this is one area of the code I have not studied.
I think in those cases, a lot depends on how the auditing agent interprets the regulations and the paperwork. Probably not common sense
If there are separate invoices and job numbers that could differentiate between job 1 and job 2....
Yes the time between the two would be a factor.......the "date" on the second invoice, which would be totally separate from the original contract would be very important. How they paid with the verifying date on it would also be critical.
When I walked into their offices yesterday with my cart stacked with crates of invoices, contracts, receipts for the past three years, they didn't even want to review it all. They just took a look at a couple samples then made their decision. It was basically a done deal on their part, and getting me to agree to their "offer".
I agreed with them that if I was audited full blown, the total would have probably been much more. I was happy with the outcome compared to how much worse it could have been. So
was my accountant. But it still stings in comparison to how down my business has been since the recession.
I feel for you there. I went through a full blown audit about ten years ago, and in the middle of it, they changes auditors, so instead of looking at three years of records, they looked at three and a half. The audit was at my accountant's office and I wasn't there, but we really just overwhelmed them with paperwork and they went through it all. I had been told that the auditors average around $400 penalty for every hours they're there, but in my case, they found no change. I had done everything by the book and they were even surprised when they found me paying sales tax on transparency film, which most people purchased for resale, but since I was not reselling the film, only licensing the images, I paid tax on the film.
I also had expenditure receipts for everything that I buy....and pay tax on..but never claimed as deductions...i don't use my resale certificate because it's too much hassle.......so I told them that........and that If they were going to penalize me big time, that I would want three years of tax credits factored in as I legally was entitled to those credits.
