You may use AI chatbots for customer service. Are companies that provide generative AI chatbots subject to sales tax? The Indiana Department of State Revenue says no (see Revenue Ruling #2025-02-RST). The state says the chatbot AI is a service, which is exempt from its sales and use tax. #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download for Free our newly-updated eBook, "150+ Tax Deductions for Small Business A to Z" Revised to reflect changes in the One Big Beautiful Bill
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