Do individuals who do not have official businesses have to collect the tax (for example, I am an individual non-employee consultant who receives a 1099-MISC from my clients for my charges to them)?
In general, even individuals who make taxable sales will need to open a sales tax account with the Comptroller and set up processes for charging the tax to their customers and remitting the sales tax to the Comptroller with sales tax returns. There is no exemption for individual sellers under even the current sales tax law. An exclusion in current law only provides that a taxable sale “does not include a transaction whereby an employee performs a service for the employee’s employer.” We are providing feedback to the Comptroller’s office that many computer consultants are 1099 individual contractors rather than employees or business enterprises.
Related Questions
- Do individuals who do not have official businesses have to collect the tax (for example, I am an individual non-employee consultant who receives a 1099-MISC from my clients for my charges to them)?
- Why don all out-of-state businesses collect use tax for other states?
- Do all businesses have to collect the harmonized tax?
