[Hidden-tech] Massachusetts sales tax policy

[Rich@tnr]

Marcia,

More info needed - because it depends on if there are underlying 
physical objects.
#1 is probably correct - #2 is the issue.

Very poor customer service not to explain.

See:

https://www.salestaxinstitute.com/resources/online-software-subscription-fees-taxable-in-massachusetts

and

https://www.mass.gov/letter-ruling/letter-ruling-14-1-salesuse-tax-on-subscription-to-on-line-merchandise-database

Reads like different sides of the question

Rich

On 11/8/2021 3:04 PM, Marcia Yudkin via Hidden-discuss wrote:
>
> Hi everyone,
>
> I received a notice from an online company I do business with saying 
> that they are going to start charging sales tax on their subscription 
> fees.
>
> This seems totally wrong to me for two reasons.
>
> 1)They announced it as a blanket policy, although each state has 
> different tax policies and some states have no sales tax at all. (eg 
> New Hampshire)
>
> 2)In Massachusetts, from what I know, sales tax is not levied on 
> services, only on products. That means that a subscription fee is not 
> subject to state sales tax. Isn't that correct?
>
> I want to make sure I'm on solid ground before I write back to them to 
> object. And if they do go ahead and charge sales tax improperly (the 
> subscription fee is $500/year so this would be $25+), how do you 
> suggest I deal with that? Object to the credit card company if they 
> won't budge?
>
> Thanks,
> Marcia Yudkin
> www.yudkin.com
>
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