True Object Test Decision Diagram

Quick assessment tool that will help you determine which of your products and services are taxable…

Sales Tax for Services: Side by Side Invoice Comparison

In this mini-training, Diane Yetter compares two differently formatted invoices for the same transaction to demonstrate the importance of invoice presentation for the taxability of the services you’re providing. Wording your invoice in a certain way can increase your taxability.…

Service Providers: Are you Making This Big Sales Tax Mistake?

If you’re a service provider selling goods along with non-taxable services, you may be making one simple but big mistake that can create a sales tax burden for your business.

Utah Expands Taxation to Specified Services, Repeals and Creates Exemptions

Utah has enacted legislation with numerous sales tax changes, effective April 1, 2020.

Point-of-Sale Services Subject to Washington Sales and Use Tax

The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.

Washington Enacts B&O Tax Surcharge on Services and Increases B&O Tax Rate on Financial Institutions

Effective January 1, 2020, Washington will impose a B&O tax surcharge on businesses primarily engaged in one or more specified services.

Tennessee Makes Changes to Professions Subject to Professional Privilege Tax

Effective June 1, 2020, only the following professions are subject to Tennessee’s professional privilege tax: Agent (Securities) Attorney Broker-Dealer Investment Adviser Lobbyist Osteopathic Physician Physician The following professions previously subject to the professional privilege tax will be exempt beginning on…

Taxpayer’s Services Qualify as Nontaxable Professional Services in South Carolina

Sales of a taxpayer’s services were not subject to South Carolina sales and use tax since the true object of the transaction was the provision of nontaxable professional services.

Maryland Enacts Exemption for Commercial Building Cleaning Services

Effective April 30, 2019, Maryland sales and use tax does not apply to cleaning services for a commercial or industrial building owned by a common ownership community or a retirement community used for specified services.

Kentucky Enacts Exemption for Specified Services if Certain Conditions Are Met

Kentucky has enacted legislation that exempts specified services from taxation if one of the following conditions is met: The services were sold prior to January 1, 2019 and gross receipts from the sales were less than $6000 in calendar year…

Idaho Provides Exemption for Vehicle Accessory Installation Charges

Idaho passed legislation that creates a sales tax exemption for labor costs on vehicle accessory installation.

Hazard Removal Services Subject to New Mexico Gross Receipts Tax Since They Were Performed In-State

Hazard removal services provided by a taxpayer for the DEA were subject to New Mexico gross receipts tax since the services were performed in the state.

Motor Vehicle Maintenance Contracts Sold to Nonresidents Subject to Tax in Virginia

A car vehicle dealer’s sale of extended warranties, service and maintenance contracts and agreements for vehicles purchased in Virginia but licensed and registered in another state are subject to Virginia sales tax.

Iowa Expands Tax Base to Include Additional Specified Services

Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.

Provision of Personnel to Manufacturer Not Taxable as Employment Service in Ohio

A company that provided personnel to a pet food manufacturer was not subject to Ohio sales tax since it did not provide a taxable employment service.

Certain Cleaning Services Exempt from New York Sales Tax

A taxpayer’s carpet cleaning services are exempt from New York sales tax, but its other cleaning services and floor repair services are subject to sales tax.

Photograph Tinting and Coloring Services Subject to North Carolina Sales and Use Tax

Effective September 1, 2018, charges for services to tint or color a consumer\’s tangible or digital photograph are subject to North Carolina sales and use tax as repair, maintenance, and installation services.

Kentucky Expands Sales Tax Base to Include Specified Services

Effective July 1, 2018, Kentucky has expanded its sales tax base to subject specified services to sales tax.

In-State Repair Services for Nonresidents are Taxable in Washington

The Washington Department of Revenue has issued guidance regarding the taxability of repair services for nonresidents of Washington. Tangible personal property repair services performed in Washington for customers located outside of Washington are subject to Washington business and occupation (B&O)…

Non-Member Fees for Club Services Exempt in New York

New York has issued an advisory opinion concluding that fees paid by non-members of a social club for services provided by the club are not subject to sales tax.

West Virginia Enacts Exemption for Repair, Remodeling and Maintenance Services for Certain Aircraft

Effective for sales made on or after September 1, 2018, West Virginia has enacted an exemption for repair, remodeling and maintenance services for certain aircraft.

Destination Management Company’s Transfers of Property and Related Services are Exempt in California

A destination management company’s transfers of tangible personal property, as well as related service charges, were not subject to California sales and use tax.

Nexus of Medical Transcription Service Prompts Discussion of Illinois Sales and Use Tax

An Illinois Department of Revenue general information letter detailed that although a taxpayer’s medical transcription service performed work for customers in Illinois, no tangible personal property was transferred, so no tax was due.

Texas Enacts Exemption on Insurance Services Performed by Certain CPA Firms

Texas enacted a sales tax exemption for insurance services performed by certain CPA firms, effective 01/01/18. More…