How To: Determine Sales Tax Sourcing for Services

It’s daunting to figure out where you have sales tax obligations. And when you are a service provider, the responsibility grows even more complicated! If you have physical or economic nexus in the states that tax services across the country, you are at risk of an audit unless you are collecting properly. Your business is in one state. Your customer is in another. Your employee providing the service works remotely from ANOTHER state. Where do you even begin figuring out where to charge sales tax? Since South Dakota v. Wayfair, the tricky part is determining where your transaction is sourced and where you are responsible for collecting and remitting sales tax. Keep reading to gain an understanding of the different rules of sourcing on an industry level for services…

Source: salestaxinstitute.com

---

---