Texas is one of many US states that now require marketplace businesses like Upwork to collect and remit marketplace facilitator sales tax when sales are made from purchasers who are located in the state.
Starting as early as August 15, Upwork will collect and remit marketplace facilitator sales tax on hourly and fixed-price freelancing services that are purchased by Texas marketplace and enterprise clients.
Although the freelancer’s location does not exempt any Texas client from this legal requirement, taxability will depend on the client’s city and county of residence.
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