Service Providers: Don’t Assume You Are Always Tax-Free!

Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.

However, it’s not that simple! Sales tax can indeed apply to certain services and the taxation of services across the states is an ever-changing landscape, particularly for services that have digital elements.