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I have to join a software project network. I am buying right to do work. Should there be sales tax on the membership invoice?

Full Question: I have to join an Oracle Project Network. I am buying right to do work. Oracle has charged sales tax on the membership invoice. Is this legal? Need urgent answer.

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Answer:

Diane Yetter photoThe determination as to whether sales tax applies to the fees you are paying to become a member of Oracle Partner Network depend on what you receive in exchange for the fees you are paying. In reviewing their web page, it appears that the membership fees include a variety of different items including software, tools, support, training and access to materials. Many of these items are subject to tax and that is likely why the sales tax is being applied. In order to make a more definitive determination, you would need to request from them details concerning what is provided as part of the membership and then determine if the components are subject to tax in your state (assuming you provide address information to Oracle). If there are both taxable and exempt components, because the amount is bundled, it is likely the entire amount will be subject to tax unless the taxable components are de minimus. If you need assistance evaluating the components once you receive the details, we can assist you through our consulting services.

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