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Texas – Manufacturer Warranty Claim Reimbursement Services Are Not Taxable Data Processing

  • In Private Letter Ruling No. 20250710150515, the Texas Comptroller determined that a company’s services assisting motor vehicle dealers with warranty claim reimbursements are not taxable data processing services under Texas sales tax law.
  • The ruling emphasized that the company does not store, manipulate, or provide a database for the data; instead, it simply reviews claims submitted by dealers, which does not fall under taxable services.
  • Additionally, the ruling clarified that the company’s proofreading and editing of dealer claims do not qualify as taxable data processing services, reinforcing the nontaxable status of their warranty claim reimbursement assistance.

Source Deloitte



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