6 - Taxes

Each party shall be solely responsible for any taxes, duties, or levies imposed on it in connection with the performance of this Agreement. However, the Client shall be responsible for any applicable sales tax, use tax, or similar taxes related to the Consultant’s provision of services under this Agreement, except to the extent that the Consultant is required by law to collect and remit such taxes.

Plain English Explanation of the Taxes Clause (U.S. Legal Standards)

This clause clarifies who is responsible for taxes related to the contract.

• Each party is responsible for paying its own taxes related to performing this Agreement. This includes income taxes, business taxes, or other applicable levies.

• The Client is responsible for any applicable sales tax, use tax, or similar taxes related to the Consultant’s services, unless the Consultant is legally required to collect and remit those taxes.

Key Takeaways:

✔ Each party covers its own tax obligations, avoiding confusion. ✔ The Client is responsible for any applicable taxes on the Consultant’s services, ensuring the Consultant receives their full agreed-upon fees. ✔ Aligns with U.S. tax laws, distinguishing between sales tax obligations and other taxes. ✔ Prevents disputes over tax responsibility, ensuring smooth financial transactions.

This explanation ensures clarity while complying with U.S. tax laws regarding service-based agreements.