The State of Texas requires that we charge state sales tax on our web and hosting services. If we have a signed Exemption Certification, as discussed below, we are not obligated to charge you Texas sales tax on our services.
For Businesses With No Physical Presence in Texas:
Because the internet involves website servers located across the U.S., your business location, for State of Texas Sales Tax purposes, is not necessarily defined by your office or store location.
Even if your business is not located in Texas, we ask that you complete the multi-state exemption form to legally release us from having to charge Texas sales tax.
Please review the rest of this document and complete the Texas Sales and Use Tax Exemption Certification.
For Businesses Located in Texas:
As you are probably aware, in Texas, all website development, maintenance and hosting are subject to state sales tax. However, if you also derive business outside of Texas you are only required to pay sales tax on the percentage derived directly from Texas.
For example, if 30% of your business is derived from Texas, you are only liable for sales tax on 30% of the website fees. As a benefit to our Texas clients, we do not charge sales tax; they only pay sales tax on the portion of the website used in-state, making use of the multi-state tax exemption provided by the state.
Completion of the Texas Sales and Use Tax Exemption Certification provides this type of exemption and releases Double Fox Websites from charging you state sales tax on the website services we provide. Thus, you will not have to pay Texas sales tax on 100% of the website system cost. You are still liable for remitting Texas sales tax on the percentage of use your site produces within Texas.
In order to claim this multi-state tax exemption it is imperative that we have a completed form on file. Failure to complete this form will obligate Double Fox Websites to collect sales tax on all web services.
We will be sending the form to you via PandaDoc for online completion, if applicable.