- The Texas Comptroller of Public Accounts issued a private letter ruling on November 24, 2024, denying a taxpayer’s request to exempt cloud computing services from Texas sales tax under the resale exemption, stating that these services are primarily for internal use.
- The taxpayer, which provides web-based transportation logistics solutions, argued that its cloud service purchases were for resale, as fees were based on customer usage; however, the Comptroller determined that the cloud services were mainly used to operate the taxpayer’s online system.
- The ruling emphasized the importance of companies evaluating their cloud service contracts and including detailed agreements that specify resale usage to support any claims for tax exemptions.
Source PwC
Latest Posts in "United States"
- Update Sales and Use Tax: Tax Base and Taxability Updates Across Various States
- Introduction to U.S. Sales Tax Exemptions
- Nexus and Marketplace: Recent Tax Regulation Updates Across California, Georgia, Hawaii, and Louisiana
- California proposes rules for determining proper allocation of Technology Transfer Agreement values
- US Postpones Tariffs on Pharmaceuticals and Wooden Products