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Services Taxation

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Does your company provide SERVICES? If so - do you realize that the services you sell may now be taxable? As states scramble to raise revenue, more and more of those states are looking to the taxing of SERVICES to bring in new tax dollars. And as an increasing number of sellers are relying upon the Internet to market and sell their services on a multi-state basis - sellers (as well as their advisors) are often shocked to learn that those services may in fact be taxable in some jurisdictions. This can create issues not only in the seller's home state - but anywhere they have customers. Issues can also be created for customers, because if the service provider is not collecting the tax then the customer is generally responsible for self-assessing the tax and paying it directly to the state. In this blog we will address commonly taxed services and multi-state issues from both the perspective of the provider and purchaser of a service.

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