News & Publications
In Case You Missed It: Last Week in Allyn Tax News (July 18-22)
The More You Know; The More You Save – TX Online Learning Courses Exempt
Online learning courses on academic subjects, professional topics, and vocational licensure preparation are not taxable, as determined by the Texas Comptroller of Public Accounts. On the other hand, sales of teacher plans which allow teachers to “customize lessons, schedule instruction, assign homework and assessments, and maintain and track student grades and progress, in addition to accessing digital courses,” have been ruled taxable data processing services. This is due to storing, retrieving, and collecting data related to the students. In Texas, 20% of the sales price of data processing services are exempt, leaving the taxpayer responsible for collecting and remitting tax on only 80% of the transaction.
Work Hard, Pay Hard: Direct Pay Permit Audit in AR
A taxpayer in the manufacturing industry had sales and use tax assessments against them sustained after purchasing tangible personal property from in-state vendors with a direct pay permit. Under audit, it was determined that the taxpayer did not accrue appropriate use tax on purchases that did not qualify for exempt use. Further, it was determined that the taxpayer did not qualify for the manufacturing exemption for replacement machinery because the taxpayer did not prove that the items purchased for certain upgrades were exempt from tax as substantial replacements of existing manufacturing machinery and equipment even assuming the upgrades improved efficiency.
Maryland Made a List, and You Should Check It Twice!
The Maryland Comptroller's Office has created a list of tangible personal property and services which is subject to sales and use tax. This is not a complete list, but it may be used as a guide in determining the taxability of tangible personal property and services. The determination of whether a sale of a particular good or a service is taxable depends on many factors. Applicable law, regulation, and the comptroller's tax publications should be consulted for more detailed explanations of property and services that are subject to sales and use tax. The current list has been updated to conform to statutory law that exempts certain supplies.
4 States Update Taxability Matrix
Minnesota, North Dakota, Oklahoma, and Wyoming have all recently updated their taxability matrix and certificate of compliance to reflect the Streamlined Sales and Use Tax Agreement (SSUTA). These updates vary by the state. Make sure your business is still in compliance!
For More Information
If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.