Sales tax is ridiculously complex sometimes. For example, HTML programming is considered a Data Processing Service and is subject to tax. Contract programming is not taxable (i.e. you create a program and give exclusive rights to the client). But programming that is embedded in an HTML page (PHP, ASP, etc) is subject to the Data Processing Service sales tax. Also, only 80% of the data processing service fees are subject to tax.
The advice to consult a CPA is ultimately the best option, but if you're trying to answer a quick question you can always search http://cpastar2.cpa.state.tx.us/q_multi.html. Warning: you're likely to leave more confused than when you entered. You can also email questions via this form: https://www.window.state.tx.us/taxhelp/ Good luck and happy new year! -RYAN JOY http://twitter.com/atxryan On Dec 29 2009, 12:27 pm, Keith Aric Hall <[email protected]> wrote: > Agreed. In general, the services provided to the end client are taxable. Who > is responsible for collecting and remitting the taxes depends on the > situation, but ultimately the services are subject to sales tax. > On Dec 29, 2009, at 12:14 PM, Michelle McGonagle wrote: > > > Well of course when you are dealing with sub-contractors. Sub-contractors > > do not pay sales taxes. I was referring to the situation between Company A > > and the client directly. > > > See the section titled Data Processing: > >http://www.window.state.tx.us/taxinfo/taxpubs/tx96_259.html > > 05:46 > > > _______________________________________________ > > Michelle McGonagle | Director of Business > > P: (512) 850-6490 | [email protected] > > 6001 W Parmer Ln | Suite 370-108 | Austin TX 78727 > > J Ortega Group | Twitter | Facebook > > _______________________________________________ > > > On Dec 29, 2009, at 11:40 AM, Eric Salys wrote: > > >> 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 | Twitter | Facebook > >> _______________________________________________ > > >> 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 > > >>> -- > >>> Our Web site:http://www.RefreshAustin.org/ > > >>> You received this message because you are subscribed to the Google Groups > >>> "Refresh Austin" group. > > >>> [ Posting ] > >>> To post to this group, send email to [email protected] > >>> Job-related postings should followhttp://tr.im/refreshaustinjobspolicy > >>> We do not accept job posts from recruiters. > > >>> [ Unsubscribe ] > >>> To unsubscribe from this group, send email to > >>> [email protected] > > >>> [ More Info ] > >>> For more options, visit this group > >>> athttp://groups.google.com/group/Refresh-Austin > > >> -- > >> Our Web site:http://www.RefreshAustin.org/ > > >> You received this message because you are subscribed to the Google Groups > >> "Refresh Austin" group. > > >> [ Posting ] > >> To post to this group, send email to [email protected] > >> Job-related postings should followhttp://tr.im/refreshaustinjobspolicy > >> We do not accept job posts from recruiters. > > >> [ Unsubscribe ] > >> To unsubscribe from this group, send email to > >> [email protected] > > >> [ More Info ] > >> For more options, visit this group > >> athttp://groups.google.com/group/Refresh-Austin > > >> -- > >> Our Web site:http://www.RefreshAustin.org/ > > >> You received this message because you are subscribed to the Google Groups > >> "Refresh Austin" group. > > >> [ Posting ] > >> To post to this group, send email to [email protected] > >> Job-related postings should followhttp://tr.im/refreshaustinjobspolicy > >> We do not accept job posts from recruiters. > > >> [ Unsubscribe ] > >> To unsubscribe from this group, send email to > >> [email protected] > > >> [ More Info ] > >> For more options, visit this group > >> athttp://groups.google.com/group/Refresh-Austin > > > -- > > Our Web site:http://www.RefreshAustin.org/ > > > You received this message because you are subscribed to the Google Groups > > "Refresh Austin" group. > > > [ Posting ] > > To post to this group, send email to [email protected] > > Job-related postings should followhttp://tr.im/refreshaustinjobspolicy > > We do not accept job posts from recruiters. > > > [ Unsubscribe ] > > To unsubscribe from this group, send email to > > [email protected] > > > [ More Info ] > > For more options, visit this group > > athttp://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin
