Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.548 - SALES FACTOR: SALE OF A SERVICE

Current through August 31, 2023
Section
				63-3027(13)(c),
				Idaho Code
01.
General
			 Rule
. The receipts from a sale of a service are in this state if and to
			 the extent that the service is delivered to a location in this state. In
			 general, the term "delivered to a location" refers to the location of the
			 taxpayer's market for the service, which may not be the location of the
			 taxpayer's employees or property. The rules to determine the location of the
			 delivery of a service in the context of several specific types of service
			 transactions are set forth below in Subsections
			 548.02 through
			 548.04. (4-6-23)
02.
In-Person Services
. (4-6-23)
a. In General. Except as otherwise provided
			 in this Subsection 548.02,
			 in-person services are services that are physically provided in person by the
			 taxpayer, where the customer or the customer's real or tangible property upon
			 which the services are performed is in the same location as the service
			 provider at the time the services are performed. This Rule
			 548 includes situations where the
			 services are provided on behalf of the taxpayer by a third-party contractor.
			 Examples of in-person services include, without limitation, warranty and repair
			 services; cleaning services; plumbing services; carpentry; construction
			 contractor services; pest control; landscape services; medical and dental
			 services, including medical testing, x-rays and mental health care and
			 treatment; childcare; hair cutting and salon services; live entertainment and
			 athletic performances; and in-person training or lessons. In-person services
			 include services within the description above that are performed at (1) a
			 location that is owned or operated by the service provider or (2) a location of
			 the customer, including the location of the customer's real or tangible
			 personal property. Various professional services, including legal, accounting,
			 financial and consulting services, and other similar services as described in
			 Subsection 548.04 of this rule, although
			 they may involve some amount of in-person contact, are not treated as in-person
			 services within the meaning of this Subsection
			 548.02. (4-6-23)
b. Assignment of Receipts, Rule of
			 Determination. Except as otherwise provided in this paragraph (b.), if the
			 service provided by the taxpayer is an in-person service, the service is
			 delivered to the location where the service is received. Therefore, the
			 receipts from a sale are in this state if and to the extent the customer
			 receives the in-person service in this state. In assigning its receipts from
			 sales of in-person services, a taxpayer must first attempt to determine the
			 location where a service is received, as follows: (4-6-23)
i. If the service is performed with respect
			 to the body of an individual customer in this state (e.g. hair cutting or x-ray
			 services) or in the physical presence of the customer in this state (e.g. live
			 entertainment or athletic performances), the service is received in this state.
			 (4-6-23)
ii. If the service is
			 performed with respect to the customer's real estate in this state or if the
			 service is performed with respect to the customer's tangible personal property
			 at the customer's residence or in the customer's possession in this state, the
			 service is received in this state. (4-6-23)
iii. If the service is performed with respect
			 to the customer's tangible personal property and the tangible personal property
			 is to be shipped or delivered to the customer, whether the service is performed
			 within or outside this state, the service is received in this state if the
			 property is shipped or delivered to the customer in this state.
			 (4-6-23)
c. Rule of
			 Reasonable Approximation. In an instance in which the state or states where a
			 service is actually received cannot be determined, but the taxpayer has
			 sufficient information regarding the place of receipt from which it can
			 reasonably approximate the state or states where the service is received, the
			 taxpayer shall reasonably approximate such state or states.
			 (4-6-23)