Michael J Fleming & Associates

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Services Can Be Taxable

Whenever I am speaking to large groups either in person or on a webinar, there is always someone in the audience who tells me that services are not taxable or they qualify it with an "at least" services are not taxable in my state. This individual is very often a CPA or other tax professional. The problem is, that I do not know of any state who has a sales tax, that does not tax at least some services. I recently received a call from a company with an irate customer who was audited and wanted to know why he was never charged sales tax. I have written a blog post detailing this story called,

In this "sample" scenario, we have a family-run commercial janitorial services company. It's a successful local business which has been operating for years in the state of Georgia (GA). One of the owner’s sons approaches his father about leveraging their business reputation in order to grow their business exponentially. The plan is to launch a nation-wide Internet marketing campaign - and then subcontract new business from across the country to local service companies. The idea becomes an impressive success and suddenly the company is growing leaps and bounds. Everybody's happy! That is until one of their customers is audited by the state of Texas (TX). 

Here is the link to the full post: http://bit.ly/2IlWoaO

Michael Fleming