TX —Sales & Use Tax: Social Media Management Services
TX—Sales & Use Tax: Social Media Management Services
Texas has provided sales and use tax guidance on social media management services. The different types of services that are involved in social media management are discussed.
Written Content
Writing original content such as a blog and posting comments on social media is not taxable. Proofreading and editing are also not taxable.
Advertising
Placing an ad on social media is not taxable. Nontaxable internet advertising includes:
- classified ads;
- banner ads;
- text links;
- skyscraper ads; and
- vertical banners.
Website Management and Data Processing
Activities that are considered taxable data processing services include:
- creating informational reports on customer’s followers;
- designing or developing a website;
- hosting a website; and
- maintaining or modifying website content.
Finished Art and Photography
Creating finished graphic artwork in any format is a taxable service. Finished art includes:
- logos;
- images;
- marketing material designs; and
- website graphics.
Multiple Services
If you provide both taxable and nontaxable services, tax only needs to be collected on the taxable services if:
- the charges are separately stated; and
- the nontaxable service is distinct and identifiable.
If multiple services are not stated separately, and the taxable services account for 5% or less of the contract price, the tax does not need to be charged.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.