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Question

I'm a software developer but I've never really done outside consulting until recently. I've just set up an LLC but am clueless about tax issues for billing clients. I live in Florida and need to bill an Arkansas non-profit for consulting services. Do I charge my county's tax rate (Pinellas, 7.5%), Florida's (6%), or none because they're non-profit?

Submitted: 22 days and 13 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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State/Country relating to question: Florida

Accepted Answer

Hi,

computer and data processing services - are taxable in Florida. If you perform your services in Florida - you generally should charge sales tax. The tax rate is based on your county rate.

 

However - there are Exemptions on Purchases Made by Certain Non-Profit Organizations

a sales tax exemption will be available for non-profit organizations that have been determined to be exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. This exemption applies only to sales and leases directly to these organizations. Dealers are not to accept proof of 501(c)(3) status as sufficient evidence to make tax-exempt sales to these entities. A valid Consumer's Certificate of Exemption (Form DR-14) is required.

 

If you provide services in Arkansas - no Florida sales tax will be due - but your income might be a subject of Arkansas income tax.

 

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 10/29/2009

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