SALT Report 1978 – The Wyoming Department of Revenue updated their guidance regarding the taxability of professional services. Generally, professional services are not subject to sales and use tax so long as they do not include any sales of or repairs, alterations, or improvements to tangible personal property.
Professional Persons and Services
Professional persons include but are not limited to accountants, engineers, doctors, technical writers, attorneys, and tax preparers. If a professional person is engaged in non-taxable services then the professional persons are not required to be licensed for sales tax purposes. However, equipment, tools, and supplies that are purchased by a professional service business in order to run the business are subject to sales and use tax.
Professional services that involve the creation of concepts are nontaxable. This includes any tangible personal property that is a by-product of the creative process, such as blueprints, specifications, diagrams, designs, schematics, and data sheets. However, sales of these items are taxable if they occur outside the scope of the professional/customer relationship.
Teachers, Trainers, and Instructors
Professional services provided by a teacher, trainer, and/or instructor are not subject to sales tax. With respect to training materials, if the cost of training involves course materials, then no sales tax is due on the training package. However, if the course materials are separate from the training activities, they are subject to sales tax.
If the course materials are included in a single package price for a training program, then the materials are subject to tax when they are purchased by the trainer/instructor because the trainer/instructor is the end consumer or user of the materials used in the training program. The trainer/instructor incurs the tax liability but may pass the costs and tax on to their students or clients.
Consultant, Inspection, and Oil and Gas Well Site Services
The Department cautions that many non-taxable professional services have taxable elements within the service. Therefore, anyone who provides consultant or inspection services is advised to contact the Department and schedule a review to determine whether the specific services are subject to tax.
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