Thanks for this write up Ryan.
Ricky Chilcott
1

Yes, as I understand it, services are not taxable. However, it can be a gray area when it comes to something like a website. Is the website a good, or a service? When is a website a web app? Does it even matter?

I know some freelance creatives have played it safe by labeling their invoices with “Web development services.”

However, if even though it was a result of a service, if goods exchange hands (like a CD-ROM backup of the website, or photos from a photography service), then it is likely to be taxable. This does seem to vary specifically from state to state, so it may be a good idea to just email your state’s department of revenue and ask. I did this a few years ago in regards to charging people for web hosting in Ohio, and they responded that I don’t have to collect. Of course, I saved the email too and filed it away for safekeeping :)

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