- The main takeaway: A Texas court decision is an important reminder that being a government contractor does not necessarily exempt your business from sales tax on purchases made in connection with that contract.
- Assess the impact: Since the exemption from sales tax on purchases does not typically flow-through to businesses performing services for the government, it’s critical for government contractors to be proactive in understanding the sales tax rules in states where they make purchases.
Source: aprio.com
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