I am in North Texas and I talked to a CPA yesterday that suggested that I talk to the State Comptroller's office about charging Sales Tax. I just talked to her and it looks like I am suppose to charge my clients Sales Tax and I need to get a Sales Tax Permit.

Anyone else know about this??

-Cherish

Make sure you ask if you are supposed to charge sales tax on out of state customers as well as in state customers.

Every state is different. There is no such tax on my services (yet), but all of my clients are out of state, so they would most likely be exempt.

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Kathy Crofoot
http://www.kathycrofoot.com

The services lead to goods. Wether it is a piece of paper that shows travel arrangements or producing a presentation. All the "services" end up with a produced product of some sort. It is kinda confusing but I didn't even realize it. I guess I will be gettting a Sales Tax permit.

It's good that you rec'd that advice, sounds like it was timely.
I have to admit I'm grateful that we haven't had a need to go this route with our own business. It seems like a headache!

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Sales Tax varies by State. Texas is a State that requires sales and use tax on services. In Texas, sales tax is charged based on the location of where the services were provided (your office) to other Texas residents, use tax is charged based on where the "product" is delivered (the clients office).

However, as Kathy mentioned I would double-check to see if Sales is charged to out-of-state clients or not.

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Rebecka Melson ~ Virtual Business Services

CherishR, I am also in North Texas. You will need to get a Sales Tax & Use Permit, as administrative services are taxable in Texas. It is real easy, you can do it online and you'll get your Tax ID# immediately, then they mail you a certificate within a couple of weeks. Here is the link, http://www.window.state.tx.us/taxpermit/. They will ask you for a NAICS code, I used 561410, which is all document preparation services. There is a link to look up other codes, but that one covers the majority of my services.

Hope this helps! If you have other questions, just contact me.

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Deborah Reynolds
DediKated Resource

Thank you SO Very much!!! That is great. I was wondering which NAICS code I was gonna use. I started to look thru the list and then

I can't remember which NAICS code I used without looking it up but in West Virginia, I was told I was to charge sales tax for in state clients but out of state was exempt. Tax laws are so confusing. Almost makes me want to move back to Ohio, they were much easier to understand or else I was in business there long enough to sort them out.

Jenny

Hi! I am Angelic and I am located in South Texas. I understand that I have to get the sales tax and use permit, but do you have to charge taxes on services to clients that are out of state? I would think you would have to since the service is generated in your home located in Texas. Did either of you file a DBA with your county? I am researching this right now and got lucky with your postings.
Any advice would be good. Thanks!!

Tax laws are crazy, and it depends if you are selling services or products. I believe that services are not taxable, but best to check with a tax attorney in your atate. Good luck