Credit Reporting Services
January 2001
If you're in the credit reporting business, you should be collecting sales tax. You may give a credit report over the phone, in writing, or by using a computer. Charges for these reports are taxable.
Collecting Tax
You should collect state sales tax, plus any local (city, county, special purpose district or transit) tax, on the total amount you bill for your credit reporting service, including any dues or other fees you may charge.
Services for Out-of-State Customers
Even if your customer is not based in Texas, tax is due on your credit reporting service if the address of the credit applicant at the time of the request for a report is in Texas, and the person who requested the credit report is located in Texas or is doing business in Texas.
Materials, Supplies and Equipment
You should pay tax on all materials, supplies and equipment used to perform the service.
Reselling a Credit Report
At times, you may subcontract with a third party for a credit report. The third party will bill you. You, in turn, will bill your customer. You may give the third party a resale certificate in lieu of paying tax on the service. You will then collect tax from your customer on your total charge.
Need More Information?
Ask for a copy of Rule 3.343-Credit Reporting Services.
This bulletin provides general guidelines. If you have a question about a specific transaction or activity, give us a call, or write:
Tax Policy Division111 East 17th Street
Austin, Texas 78774
Need More Assistance?
- Email us at tax.help@cpa.state.tx.us.
- Call us toll free.
- Visit one of our local field offices.
94-106
(1/01)