- 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"
- Understanding Sales Tax Nexus: When Your Business Must Collect and Remit Across States
- South Carolina Rules Scaffolding Use by Insulation Contractors Is Not a Taxable Rental
- Juneau Approves Sales Tax Exemptions for Essential Foods and Residential Utilities
- California Limits Sales Tax Exemption for Multi-Buyer Dental Practice Asset Sales
- Illinois PPRT: Double Taxation on Partnership Asset Sales and Taxpayer Frustration Explained


 
        		 
        	










