Your business doesn't have to pay retail sales tax when you purchase blank cassettes, tapes, CDs, DVDs, and similar media that you use to produce duplicate copies for sale when you provide a copy of your reseller permit to the vendor.
#Master copyclip software
In order to claim the retail sales tax exemption, the seller must obtain a Digital Products and Remote Access Software Exemption Certificate from their customer. When the digital good is used for a business purpose, a retail sales tax exemption is provided under RCW (3). Unedited recordings transferred electronically are considered digital goods that are subject to B&O tax under the Retailing classification and subject to retail sales tax. You can do this by completing Schedule C when you file your tax return. You may apply a multiple activities tax credit (MATC form) to the lesser of the B&O amounts. The manufacturing B&O tax is also due on the gross selling price. When you duplicate the master copy, that is a manufacturing activity, as long as you perform the activity in Washington. If you deliver the item out of state, you may take an interstate and foreign sales deduction for both the B&O tax and retail sales tax. You must collect retail sales tax on the gross selling price (video, delivery, insurance, etc.) based on where you deliver the product. This includes both edited and un-edited copies. You owe B&O tax under the Retailing classification and retail sales tax on what you charge for copies (tangible medium and digital files) of the master. What if I sell copies of the master file?
You owe B&O tax on charges for granting the mere right to use a master copy.You need to record this under the Royalty classification on your return ( WAC 458-20-19403). What taxes do I owe when I sell the rights to the master copy? When you sell the ownership of an un-edited master copy, you owe B&O tax on the selling price under the Retailing classification and retail sales tax on your return. When you, the videographer, sell the ownership of an edited master copy, you owe B&O tax on the selling price under the Service and Other classification. What taxes do I owe when I sell the master copy?
#Master copyclip professional
That’s because the law considers this work a professional service that you perform primarily through human effort. You would not owe retailing B&O or retail sales tax. This copy would include edits, dubs, titles, or a combination of the event recording with other video material, so that you essentially create an original work. You owe business and occupation (B&O) tax under the Service and Other Activities classification if you are a videographer hired to prepare a one-of-a-kind master copy. What taxes do I owe on edited master copies that I produce? Video production businesses typically provide a variety of services, such as production services of motion picture or videography (you can see definitions at the end of this page).
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