How to I charge out of state clients sales tax for graphic arts work?
Do you have nexus in any other state other than where your business resides? If no, then you will not have to bill sales tax when you ship the final products across state lines. FYI… Nexus means that a government agency can enforce their law on you. Nexus is usually established by a physical presence. Physical presence is an office or some other physical site within that state. Nexus can also be established if you normally visit that state for work purposes. For example: (Assumption, you have NO nexus in NM.) You live and work in CA. You do the graphics art work in CA. When you are done with the final product, you ship or electronically send that final product to the cutsomer. Let’s say you delivered the final product to NM. You do NOT charge the NM tax because you are not legally required to collect the tax because you have no nexus. You do NOT charge the CA tax because you sold this in interstate commerce. For example: (Assumption, you DO have nexus in NM.) You live and work in CA.
