Question

Topic: Advertising/PR

Advertising Rates And Local Sales Tax

Posted by bgarrett on 4/24/2013 at 12:44 PM ET 125 Points
As a general rule, are net advertising rates subject to sales tax or value added tax in areas that have such a tax?
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  • Posted on 4/24/2013 at 1:21 PM Accepted
    There is no "general rule." It depends on the state or province. In some states certain advertising expenses are subject to state sales tax, while in others (even neighboring states) the same advertising costs are not subject to sales tax. Your best bet is to ask your accountant for advice based on the specific location.

    Of course, advertising on the internet is not subject to sales tax or VAT ... yet.
  • Posted by Peter (henna gaijin) on 4/24/2013 at 1:21 PM Accepted
    Keep in mind that this varies greatly by country and even by state/province/etc. within countries. Where are you concerned with?

    I run a magazine in California which does sell ad space, and we do not have to charge tax on these ads.
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