- Texas issued a private letter ruling on the taxability of certification services and registration fees provided to third party learning centers
- The taxpayer is a not-for-profit entity that sets standards for workforce safety and competence in the energy industry
- The taxpayer provides certification services to learning centers, which then provide training to students
- The taxpayer charges a registration fee to store, update, and add new certificate information on an online repository
- Certification services are not subject to Texas sales and use tax, but the registration fee is considered a taxable data processing service
- The taxpayer must collect and remit Texas sales and use tax on 80% of its monthly registration fee from learning centers
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
