| (3) A multistate customer purchasing insurance services,
such as actuarial services, for the benefit of both in-state and out-of-state
locations is responsible for issuing to the insurance services provider
an exemption certificate asserting a multistate benefit, and for reporting
and paying the tax on that portion of the insurance services charge
which will benefit the Texas location. A provider of insurance services
that accepts such a certificate in good faith is relieved of responsibility
for collecting and remitting tax on transactions to which the certificate
relates.
(4) The customer's books must support the assignment
of the service to an identifiable segment of the business, the determination
of the location or locations of the use of the service, and the allocation
of the taxable charge to Texas.
(5) To the extent the use of the service cannot be
assigned to an identifiable segment of a customer's business, the
service is presumed to be used to support the administration or operation
of the customer's business generally. The service is presumed to be
used at the customer's principal place of business. The principal
place of business means the place from which the trade or business
is directed or managed.
(k) Local tax. For information on the collection and
reporting responsibilities of providers and purchasers of taxable
services, see §3.334 of this title (relating to Local Sales and
Use Taxes).
(l) Use tax. If a provider of an insurance service
is not doing business in Texas or in a specific local taxing jurisdiction
and is not required to collect Texas state or local tax, it is the
Texas customer's responsibility to report and pay the use tax directly
to this office.
|
| Source Note: The provisions of this §3.355 adopted to be effective March 24, 1988, 13 TexReg 1224; amended to be effective November 13, 1989, 14 TexReg 5787; amended to be effective May 2, 1990, 15 TexReg 2284; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective May 1, 2016, 41 TexReg 2970; amended to be effective May 7, 2018, 43 TexReg 2794 |
