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Texas Proposes Removing Sales Tax on Platform Fees

  • Texas proposes to stop applying sales tax to marketplace and digital platform fees currently treated as taxable data processing services.
  • The change would exempt commissions, booking fees, and similar charges charged by platforms to third-party providers, including fees on Amazon, eBay, Etsy, food delivery, ride-hailing, short-term rentals, vehicle sharing, pet care, and household service platforms.
  • Under current rules, tax can apply both to the underlying sale and to platform fees charged to sellers/drivers/restaurants; the proposal would preserve tax on the underlying transaction but remove it from the platform fee itself.
  • The Comptroller will seek to amend Rule 3.330 of the Texas Administrative Code, with the proposal to be filed and then opened for a 30-day public comment period.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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