Sales Tax On Maintenance Agreements

SSUTA was created with the mission of „simplifying and modernizing sales and using the tax administration to reduce the burden of tax compliance“. It currently has 23 full Member States and one Associate Member State. Tax automation doesn`t eliminate sales and uses the complexity of taxes, but it does facilitate compliance. Learn how it works. Sums collected in commission or in return for the sale of a maintenance contract for a third party are subject to the B&O tax, in accordance with the B&O Service and Other Activities tax classification. It seems that you can hardly buy a computer, phone or other electronic handheld device or even a cheap tool without getting an advanced warranty offered. Retailers offering such service contracts should ensure that they properly comply with the tax legislation of the different home cities in order to avoid costly audits. It`s easier to tax an item in advance than to pay taxes, interest, and penalties on review, with little chance of recovering tax from your customers…