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Collecting sales tax from a service?

I am fairly certain every state out there does not collect sales tax for selling a service.

 

I want to use their api

https://www.godaddy.com/help/api-reseller-sales-tax-collection-information-and-form-12336?v=1

 

but my state does not collect sales tax and neither does Arizona where Godaddy is headquartered.

 

https://dor.wa.gov/find-taxes-rates/retail-sales-tax/services-subject-sales-tax Here is my state. You are free to find the information on arizona but I already know they do not collect sales tax for services either.

 

What gives?

1 REPLY 1
Super User I Super User I
Super User I
Solution

Re: Collecting sales tax from a service?

With regard to Sakes Tax you are not just dealing with your home State @fungames. There is a discordance of rules, regulations and charges when it comes to sales tax and it changes often. The API Reseller has no doubt gone to a Uniform Sales and Use Certificates because of the fluidity in these rules? In many cases the State legislation that sets taxes puts a high burden on companies offer individuals to insure that proper sales tax is collected. 

 

I have seen rules that set taxes based on the customer location, processor or seller location. There is therefore no guarantee that a customer of yours will not or should not be charged sales tax. I hope that helps? 

 

...turns out that my two cents is worth less or more depending on the current exchange rate.

roy darling *my posts seem a lot shorter in my head