Online Data Storage Services Not Taxable in Tennessee

Tuesday, January 24th, 2017

 
 
Woman uploading data on her iphone to an online storage service on her laptop.
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The Tennessee Department of Revenue ruled that remote access to data storage services was not taxable.

The taxpayer sold online data storage services. Customers accessed the services using a web portal. The web portal qualified as software.

Tennessee taxes remote access to computer software, but it does not tax data storage services.

The Department ruled that the data storage services were not taxable. The true object of the sale was data storage services, not the software. The incidental use of software did not make the services taxable.

http://www.tn.gov/assets/entities/revenue/attachments/16-12.pdf


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