Sales agent services
(1) Sales agent services for selling tangible
personal property, whether at wholesale or retail, include, but are not limited
to, the services of the following persons when rendered to the seller of
tangible personal property: antique dealers, consignees and brokers. Sales
agent services are rendered when a person acting on behalf of a seller locates
a buyer for property being offered for sale and a sale actually results.
Taxable services may be rendered even though the sales agent was not involved
in arranging the details of the sale. However, if a sale of tangible personal
property does not result from the services of a sales agent, the sales agent
services are not taxable.
agent services do not include consignee services for the sale of works of art,
as defined in section
of the general statutes, or articles of clothing or footwear intended to be
worn on or about the human body other than (A) any special clothing or footwear
primarily designed for athletic activity or protective use and which is not
normally worn except when used for the athletic activity or protective use for
which it was designed and (B) jewelry, handbags, luggage, umbrellas, wallets,
watches and similar items carried on or about the human body but not worn on
the body in the manner characteristic of clothing intended for exemption under
of the general statutes.
to July 1, 1997, the services of an auctioneer selling tangible personal
property were subject to tax as sales agent services, except for the services
of an auctioneer selling motor vehicles at auction to persons engaged in the
business of reselling motor vehicles. Effective July 1, 1997, any sales agent
services provided by an auctioneer are excluded from tax, although auctioneers
shall continue to collect tax upon their sales of tangible personal
representatives. Sales agent services do not include the services of a person
who acts on behalf of a manufacturer or wholesaler, or both (sometimes known as
a "manufacturer's representative"), where such person places a line of
merchandise or inventory for sale on an ongoing basis.
Charges by service
. A provider of sales agent services shall charge sales tax on
the total fee or commission charged to the seller for whom such provider acts
as agent, including all expenses that the service provider incurred in making
the sale (for example, advertising fees, rental fees or printing costs),
whether or not the service provider paid tax on such items at the time of
purchase. Where a sales agent charges a commission to the buyer of property,
such commission is not taxable as a sales agent service. However, the total
amount of the commission paid by the buyer is taxable as part of the sales
price for the purchase of the tangible personal property.
If a seller that is represented by the sales agent is engaged
in selling the property in the regular course of business, the seller is liable
for collection of sales tax from the buyer measured by the gross receipts from
the property sold. If the seller is making a "casual sale" pursuant to Conn.
Agencies Regs. §
tax does not apply to the sale of the property by the seller to the buyer. In
either case, however, the sales commission paid to the sales agent by the
seller is taxable.
Purchases by service providers. Because providers of sales agent
services are considered the consumers of supplies used in providing their
services, sales to a sales agent service provider of supplies that such
provider uses in rendering sales agent services are retail sales and are
agent services are deemed to be rendered. A sale of sales agent services
shall be treated as having occurred at the location at which the transfer of
title to the tangible personal property occurs, irrespective of the location of
the parties to the transaction. If the location at which the transfer of title
occurs is within Connecticut, the sale of services shall be treated as having
occurred within Connecticut, and thus shall be taxable, notwithstanding the
fact that the contract for services was negotiated or executed outside
Connecticut, some of the work with respect to such services is performed for
the service provider outside Connecticut, or the service provider is not
otherwise engaged in business in this state, as the term is defined in section
of the general statutes.