Tax Law Updates | New Statutes, Regulations, and Rulings
August 5, 2010
Software License Downloaded Electronically Is Not Subject to Sales Tax, Florida Revenue Department Rules
Sales and Use Tax – Computer Software
Technical Assistance Advisement (TAA) 10A-028, 6/21/2010
In a technical assistance advisement, the Florida Department of Revenue (“DOR,” or “Department”) has stated that the license to use software that is downloaded electronically by its customer is a service transaction and is not subject to sales tax provided it is not part of the sale of tangible personal property.
By way of background, the primary business activity of [Taxpayer] is the development, sale, installation and support of Medical Practice Management and Electronic Medical Records software.
Taxpayer does not sell any computer or networking products. “Our principal customers are physicians and associated health care providers located throughout the world. The…
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