How to invoice: Should I include tax in my invoice?
Thread poster: Japamerican
Japamerican
Japamerican  Identity Verified
United States
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Aug 27, 2010

Hello!

Thanks in advance.

For invoicing, should I include a tax? Naturally, you would assume so in any business transaction you make. But I did not talk about tax before negotiating the price.

Please give me some feedback.

Thanks!


 
Tomás Cano Binder, BA, CT
Tomás Cano Binder, BA, CT  Identity Verified
Spain
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Ask your tax authorities Aug 27, 2010

I think the best people to ask are the tax authorities in the place where you are operating. This way you will not have problems in the long run!

Good luck!


 
Henry Hinds
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United States
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In memoriam
Tax Accountant Aug 27, 2010

Don't ask the crowd; ask a qualified tax accountant in the locality where you reside, which appears to be in the United States. I also live in the USA and I am not required to include any tax in my invoices.

I do have to declare my income and pay income tax; we all must do that.


 
Japamerican
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TOPIC STARTER
Thanks! Aug 27, 2010

Thank you Tomas!

 
Japamerican
Japamerican  Identity Verified
United States
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Thank you Aug 27, 2010

Thank you Henry. Yes, I reside in USA.

 
jyuan_us
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Income tax or sales tax? Aug 27, 2010

If you are talking about income tax, it's your own responsibility. The client will inform IRS about the payment they made to you in Form 1099.

If you are talking about sales tax, as far as i know of, someone purchasing a service needn't pay sales tax, at least in New York. So the provider of that service should not add a line of tax on his or her invoice.

[Edited at 2010-08-27 21:24 GMT]


 
Japamerican
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Thanks Jyuan Aug 27, 2010

Hi Jyuan,

Sorry for not being clear. I meant service sales tax for my services.
Since the client is in India, I guess it wouldn't apply to them to pay sales tax for a translation service from US. I won't put it in to my invoice then.

Thanks!


 
Henry Hinds
Henry Hinds  Identity Verified
United States
Local time: 04:04
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In memoriam
Sales Tax on Services Aug 27, 2010

Normally there is no sales tax on services in the USA. But I only say "normally", because I cannot say "no" for sure, since the USA actually consists of 50 countries for such purposes, I don't put it past one of those 50 to come up with such an idea.

It should not be hard to check on that locally without it costing you any money.


 
Japamerican
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Thanks Henry Aug 28, 2010

Thanks!

 
Marina Steinbach
Marina Steinbach
United States
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Member (2011)
English to German
This really seems to depend on where you live. Aug 22, 2011

Takeru Asakawa wrote:

For invoicing, should I include a tax? Naturally, you would assume so in any business transaction you make. But I did not talk about tax before negotiating the price.


I was asking myself the same question, when I started as a Freelance Translator in the United States. Therefore, I wrote to the local authority. The Department of Revenue answered that the transaction I described (translation services that are provided electronically, such as via e-mail) is likely not subject to Florida sales tax. This really seems to depend on where you live. I am a resident of Sarasota County, Florida.


 


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How to invoice: Should I include tax in my invoice?







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