Texas enacted legislation on June 14 excluding certain payment processing services from the taxable ‘data processing service’ definition. Effective October 1, 2021, Texas statute provides that these services are not subject to sales and use tax.
Businesses can statutorily exclude payment processing services from sales and use tax beginning October 1, 2021. The enacted legislation clarifies questions regarding the Texas Comptroller of Public Account’s long-standing position on such services.
