Illinois Sales Tax for Photographers

by Dec 31, 2020Sales Tax

To begin you have to ask yourself 3 questions…


DEFINITIONS

let’s first take a look at what each of these sale tax terms means so that you can understand how it pertains to Photographers in Illinois.
These definitions are laid out below.


👉NEXUS

So, what’s nexus? The term “nexus” is used in tax law to describe a situation in which a business has a tax presence in a particular state. A nexus is basically a connection between the taxing authority and a business that must collect or pay the tax. It’s possible to have nexus in more than one state especially if you travel to another state to shoot. So you want to be sure you understand the laws of each state you work in.


👉SOURCE

The source indicates where the sales are taxed.

  • Origin-sourced sales are taxed where the seller is located, so this is based on your zip code.
  • Destination-sourced sales are taxed at the location where the buyer takes possession of the item sold.

Also, keep in mind if the client picks up tangible goods from your location or studio, this is the point where the transaction happens. If you mail or ship to the client, it will be by their zip, not yours.


👉PHYSICAL GOODS

Any physical products sold to a client, items you can touch and hold like prints, albums, frames, etc…


👉DIGITAL GOODS

These are digital items delivered electronically via telephone lines, over the internet, by email, or by another alternative form of non-physical transmission.
Beware of digital prints delivered on a physical device such as a thumb drive or CD as these are no longer digital and are now considered physical because you can touch them.
Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


👉SERVICES

Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


👉SHIPPING

This is any shipping charged by you to your client. Third parties such as album companies who dropship or online
galleries where clients can order prints will take care of their own shipping. But if you charge your client shipping,
this is where the shipping rules in this guide apply to you.


Illinois Sales Tax for Photographers

Below are the sales tax requirements for Photographers in Illinois broken out. You will find supporting links and resources at the bottom of this post.


✅Illinois Nexus

physical presence; providing service in person, having a
physical location, a warehouse, inventory, traveling salespeople or representatives, attending trade shows, or taking orders or deposits in person.


✅Illinois Source

Illinois uses origin-based sales tax, which means sales tax should be collected based on where you, the seller, are located.


✅Illinois Physical Goods

Illinois imposes sales tax on physical goods.


✅Illinois Digital goods

Digitals are taxable if delivered on a physical device like a CD or thumb drive. If delivered over the internet, then there is no sales tax applied.


✅Illinois Services

Services are not taxable unless the service produces a “product of photoprocessing,” such as physical prints and albums. In which case, you must charge sales tax on 10% of the service’s total price.


✅Illinois Shipping

Yes, if tangible goods are delivered or digital goods are delivered on media like a CD or thumb drive. No, If prints are ONLY delivered digitally (over the internet).


📆Monthly liability / Filing Frequency:

$200.01 and up / Monthly
$50.01-200.00/ Quarterly
$0.00-5.00/ Annual

📆Monthly

Due the 20th of the following month

📆Quarterly

PERIOD/DUE

Q1 (JAN – MAR) / APR20
Q2 (APR – JUN) /JUL20
Q3 (JUL – SEP) / OCT20
Q4 (OCT – DEC) /JAN20*(Following year)

📆Annually

JAN-DEC / JAN20 (Following year)


LINKS

My Tax Illinois

⭐️LookUp Rates
⭐️Illinois General Assembly – Retailers’ Occupation Tax Act
⭐️Illinois Department Of Revenue Regulation- Title 86 Graphic Arts
⭐️Illinois Sales Tax Manuel For Photographers


Have another question you’d like me to add to this list?

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– Tiffany Bastian

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