QUESTION DETAIL
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I am a staff accountant for a television and video production limited liability company, registered in New York city. I am providing equipment and crew to a corporate client that is based in the United Kingdom. The production will be shot in Connecticut. Do I need to charge my client sales tax for equipment and/or services? If so, from New York or Connecticut? Are there other billing sales tax issues I should be aware of in this situation?
ANSWER
Expert Susie Lim's Answer:
Is this a production of a film (movie) for sale? If so, the producer can rent property from you exempt from sales tax. The producer can also purchase services rendered (for a film for sale) exempt from sales tax. The fact that the producer is shooting in Connecticut is irrelevant; the conclusion would be the same even if the foreign company shot everything in New York City. What you should do is acquire an ST-121, Exempt Use Certificate, from the producer, which is a declaration by the producer that is exercising their right to an exemption in this particular situation. You can deem this a blanket-use certificate for future services to the same client. You can always refer to New York Publication 28 in the future if you have further questions regarding sales tax issues in your industry (film production & ancillary).
References: New York Department Of Revenue Publication 28
State: New York
Sales tax category: Product taxability, Tax Compliance, Tax Nexus
Product/Service: Film
