Taxable Purchases and Use Tax
Taxable Purchases and Use Tax
Items you use to operate your photography business are taxable, unless an exemption applies. Several services are also taxable.
If you do not pay sales tax on a taxable purchase, then you owe use tax.
| Taxable Purchases | Examples |
|---|---|
| General items |
|
| Photography equipment and supplies | Equipment and supplies are taxable if they are used to produce images delivered electronically. Examples include:
|
| Taxable services | For more information see Taxable Services. |
| Travel expenses | Travel expenses are taxable, even if you bill them to the customer. You may not purchase travel services exempt for resale. Examples include:
|
Use Tax
If you buy equipment, supplies, or other taxable items for your business and the seller does not charge Minnesota sales tax, you owe use tax on the cost of the items. If your business is located in an area with a local tax, you may also owe local use tax.
Some common situations where you may owe use tax include:
- You buy taxable items or services online without paying sales tax
- You withdraw an item from inventory to use (instead of selling it), donate, or give away
- You buy taxable items outside of Minnesota
- You buy taxable items in another Minnesota city or county with a lower (or no) local sales tax
For more information, see Use Tax for Businesses and Local Sales and Use Taxes.