Tennessee to Begin Taxing Remotely Accessed Software

Friday, June 12th, 2015

 
 
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Effective July 1, 2015, Tennessee will begin taxing remotely accessed software. The taxable use of computer software will now include the right to access software that remains in the possession of the seller.

Note that if the customer has users that access the software both inside and outside of the state, the price paid for the software may be allocated based on the percentage of users located in Tennessee.

In this scenario, the seller must get a Streamlines Sales and Use Tax Certificate of Exemption from the customer to document the exemption claimed for the portion of the price that corresponds to the number of users outside Tennessee. On the certificate, the customer should circle "Other" on Line 5 and provide an explanation of the exemption along with the percentage of users located outside Tennessee.

http://www.tn.gov/revenue/notices/sales/sales15-14.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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