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Question

My company plans on launching several new services including search engine optimization services, online article marketing services, online video marketing services, help with blogging, web 2.0 strategies, etc. Other than occasionally meeting with a client to sign a contract or have lunch with them, 99% of the work will be done from my home office or from a laptop computer at the nearest Starbucks coffee. My understanding is that my company must charge sales tax on these services. But, my question is whether or not I need a sales tax permit for my home address location or whether I can use my existing sales tax permit that I set up using my Texas resident agent as the location. I use this sales tax permit location any time I charge sales tax on e-commerce purchases from one of our online stores. I'm hoping I can get away using this existing sales tax permit so I can avoid the State of Texas using my home address and publishing it on their site, leading to more junk mail, etc.

Submitted: 57 days and 23 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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Posted by LEV 57 days and 20 hours ago.

Info Request

If the existing sales tax permit was issued to the same company - and you do not have retail locations - you may use the same permit.

 

While such services are not taxable in most states - they are taxable in TX - please see for reference this publication - http://www.taxadmin.org/fta/pub/services/rr147srv.pdf - page 28 for computer related services in TX.

 

See also these publications - Data Processing Services are Taxable and

Information Services

 

Let me know if you need any help.

 

57 days and 9 hours ago.

Reply

Yes. The existing sales tax permit is for the same company.

I looked at the pdf link you sent. It appears that in Texas that marketing business services are exempt. Where did you see in this form that I would be required to collect sales tax for marketing services? Just curious.

Accepted Answer

Based on your description - I would classify your services as Informational services - not as marketing services.

So the real question is how to classify your services.

 

If you have a question on a specific service classification - you might want to confirm that your classification agreed with Texas Comptroller

call toll-free number 1-800-252-5555,

or email at XXX.XXXX@XXX.XXXXX.XX.XX.

 

Let me know if you need any help.

 

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Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 9/26/2009

Tax Preparer

Taxes, Immigration, Labor Relations

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