TTR Releases Over 600 New Sales and Use Tax Answers for Cloud Computing

Sep 24th, 2015

(McMinnville, OR, September 24, 2015) - TTR, Inc. has done it again. The nation's leading provider of sales and use tax answers has just released over 600 new answers for the emerging cloud computing service known as "Desktop as a Service" or "DaaS." TTR's new content clearly answers whether DaaS transactions are subject to sales or use tax across all states.

Generally, "Desktop as a Service" is a transaction in which a purchaser obtains access to a virtual desktop over the cloud; the underlying computing infrastructure, including servers, storage, processing capacity, networks, and operating systems, is maintained by the DaaS service provider. The customer does not manage or control the underlying computing infrastructure, but instead exercises control over the operating systems, storage, and applications through the virtual desktop.

In researching tax answers for DaaS, TTR started by working with industry to fully understand DaaS, technologies used in selling DaaS and the types of DaaS transactions that get invoiced to customers. TTR spent a considerable amount of time looking at customer billing options for DaaS providers and how a state might characterize those billings. TTR's new cloud computing material answers and simply explains the sales and use tax treatment of DaaS, including central processing unit ("CPU") usage charges, random access memory ("RAM") usage charges, service storage usage charges, and backup storage usage charges.

"Cloud computing services like 'Desktop as a Service' keep us busy, because they continue to evolve at such a rapid pace," said Patrick Smith, Executive Vice President of TTR. "We really enjoy the challenge, and take great pride in staying on top of the changes and simplifying the different state approaches into digestible information for our customers. It's what we're all about."