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As a free-lance artist, tax preparers tell me I am like a printer and or graphics artist ... a service and no sales tax is required. The bulk of my work is portraits, murals, and some graphic design ... for individuals, homes, businesses. The art is personalized and is not particularly something someone else would buy. In my research ... this type of art doesn't require sales tax.

Now, I am considering art fairs and sales tax is required (a tax number). I am the sole proprietor and I don't have a business license. If I apply for a tax number ... will this open up a "can of worms"? I am also offering work for purchase online (website). Does this need a sales tax number (may be sold out of state) or a user tax?

It's all too confusing to me.

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Which country?.. – Jesper Mortensen Apr 23 '10 at 21:26

1 Answer

You really need to ask an accountant because laws vary not only by state, but even county and city. Sometimes the sales tax laws vary by zip code!

In general selling goods (finished art) means sales tax, selling hours doesn't. Graphics designers sometimes bill hourly; artists selling finished, physical goods typically need to pay tax even though the price you set might be somewhat dependent on the time needed.

But this is "typically" -- you'll need a professional opinion.

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