That is not correct according to my CPA.  Perhaps it is for your business
and your situation but it is not the case for all businesses and all
situations.  Example:  Client hires Company A to develop a program.  Company
A outsources a part, or all, of it to Company B.  Company A does not pay
taxes to Company B because the taxes will be collected when Company A sells
the final product to the Client.  Otherwise it is double taxation.  There
are lots of situations in which taxes are not collected.  My suggestion is
to join a CPA discussion group rather than asking this group tax questions.



On Tue, Dec 29, 2009 at 12:02 AM, Michelle McGonagle <
[email protected]> wrote:

> According to Texas Sales Tax Law, any service rendered using a computer is
> subject to sales tax if the client resides in Texas.
>
> _______________________________________________
>
> Michelle McGonagle  |  Director of Business
> P: (512) 850-6490  |  [email protected]
> 6001 W Parmer Ln  |  Suite 370-108  |  Austin TX 78727
>
> J Ortega Group <http://www.jortegagroup.com/> | 
> Twitter<http://twitter.com/jortegagroup>
>  | 
> Facebook<http://www.facebook.com/pages/Austin-TX/J-Ortega-Design-Group/136026940978>
> _______________________________________________
>
>  On Dec 27, 2009, at 9:57 AM, Daniel Short wrote:
>
>  We're finally starting to get some local clients after doing most of
> our development work for out-of-state companies. Is anyone here up to
> speed on sales tax requirements for in-state design and development
> services? I didn't have to charge tax for design services for in-state
> clients when we were based out of California, but as a Texas
> corporation I'm not entirely sure what the rules are.
>
> Thanks,
>
> Daniel Short
>
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