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Are Virtual Assistant Services Taxable?

Who doesn’t love tax time! That’s a rhetorical question. It’s a part of business and everyone I know enjoys being in compliance though they may not love the accounting that comes along with it.

I’ve read a few times where clients wanted taxes removed or to skip paying them. That’s not something that should be happening if there is an applicable tax.

I can’t speak for all states but not taxing a service or product to gain a sale or client is against Texas state rules.

The services offered by me as a Strategist-Virtual Assistant are a part of Ebby’s Touch and I wanted to make sure the tax rate was the same across the board so I called my state taxing agency to confirm.  I had been unable to locate this information on the state website and the nice and helpful man at the Comptrollers office took me to the ruling on the website.

Data Processing—that’s the rule it falls under according to the Texas Comptroller and it’s taxable at the same rate as services offered by the parent company Ebby’s Touch. I like to openly talk about things like this because it appears to be one of those taboo topics small businesses don’t discuss so you have startups that never establish themselves to collect the appropriate taxes and occasional clients who don’t understand why taxes apply and  are collected.

I don’t view my roll as paying taxes but rather collecting them and remitting them to the state. I also believe in educating myself even if using an Accountant. Ultimately our tax liability is just that; our liability. We may be using a provider to help us facilitate the day to day administration of our businesses but having some base knowledge never hurts.

Whether you are contracting for services or offering them if you have questions for Texas you’ll find some answers below:

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