Historically, the ultimate factor in determining if sales tax was to be charged was whether the product being sold or the work completed was tangible. Tangible items in this case might include brochures, posters, flyers, mail pieces, reports, etc. With the increasing development of the Internet and new forms of creative services, sales tax within the graphic design industry is a gray area. Many are finding it difficult to separate a taxable service from non‐taxable and defining a tangible and non‐tangible product. The clarification can get tedious and a bit uncomfortable for both the designer and consumer.
Read the full Maryland Sales Tax on Creative Design Services article.