Yes, the new services under HB 8 from the 2022 Session that became taxable on 01/01/2023 are subject to both sales tax under KRS 139.200 and use tax under KRS 139.310. Therefore, if a Kentucky customer purchases one of these services from an out of state service provider that does not charge the 6% tax on the transaction, the customer is required to directly report the 6% use tax to the Department of Revenue. According to the provisions of KRS 139.330, the purchaser's liability for use tax payment is not extinguished unless the purchaser has a receipt showing that the 6% Kentucky tax was charged by the seller on the retail transaction.
To report use tax, retail businesses should use line 23 of the sales and use tax return. Non-retail businesses with a consumer's use tax account report purchases subject to tax on line 1 of the consumer's use tax return. For non-registered businesses that have use tax liabilities, they may report purchases subject to the 6% Kentucky use tax on line 1 of the Consumer's Use Tax Return (Form 51A113(O)), available on the Department website Sales & Use Tax - Department of Revenue (ky.gov). Non-business individual consumers may report purchases subject to use tax on the individual income tax return. The department also provides a look-up table as an option to report estimated use tax owed on retail purchases based on adjusted gross income when receipts are not readily available. The link is accessible at Consumer Use Tax - Look-Up Table.