[La_Valette]

Do you need a TX sales and use tax permit to engage in affiliate marketing work in Texas? If yes, how can you collect sales tax on commission payments?

My instinct on this is that the answer is no because the services are performed for customers (affiliate networks) outside Texas, but I'd like to see what other Texans here think...

Thanks

[Howard Gottlieb]

Unless you are actually selling a tangible product or service you should not be liable for collecting sales tax. In affiliate marketing you are not party to the transaction between the shopper and the merchant that you sent them to. You are only pointing someone to a place to shop.

Hope that helps.

[La_Valette]

Thanks. I figured - there's no way to collect sales tax if I'm not charging for a tangible product or invoicing for a service fee. Besides if the end buyer and seller of any transaction are located in Texas, sales tax will be collected by the seller in that case.

I take it then that I won't need a sales and use tax permit for AM if this is the only thing I do (which it is).