Tax & Accounting Blog

Ask The Expert: The Taxability of Intangibles

Indirect Tax, ONESOURCE, Sales and Use Tax August 22, 2013

Question:

Products are usually straight forward on tax. How can more intangible items be easily determined as far as taxable. Ex: rush orders, min order, extra documentation fees, testing fees?

Answer from Tyler Nelson of ONESOURCE Indirect Tax:

Taxability of intangibles such as rush orders, documentation fees, testing fees, and the like, depend on the state. Each state can treat these items differently, and to support items like this, we research the state legislature of each state to determine the taxability of the different intangibles.