TTR Releases Additional Software & Technology Answers

Friday, August 7th, 2015

 
 
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McMinnville, Oregon - August 7, 2015 - TTR, the leading supplier of sales tax answers to the largest companies in the U.S., announced today that it has added new software and technology content to its online sales and use tax library. To identify specific areas of content expansion, TTR worked closely with some of the largest technology companies in the U.S. As a result of this collaboration, the new content includes additional tax answers specific to cloud-based software, maintenance agreements, and tax collection requirements (i.e., nexus) unique to this area.

The first new area of content addresses cloud-based software, including "Software as a Service" (SaaS) and Application Service Provider (ASP) software. In some states, the taxability of ASP software depends on whether the software is hosted on a server located within the state. For example, Mississippi taxes software as tangible personal property when the software is used, stored, or consumed in the state. In contrast, software is not taxable in Mississippi if maintained on a server outside the state and accessed over the internet. TTR fully researched and refined its cloud-based software items by addressing the sales tax consequences, both when the software is located on a server within the state and when it is located on a server outside the state.

Additionally, TTR clarified issues surrounding maintenance agreements and the varying state procedures for collecting and remitting sales tax on such agreements. Tax professionals frequently encounter questions such as whether to collect sales tax up front on the full value of an agreement or over the life of the agreement on each installment payment, or which state will allow a partial refund of tax paid if the maintenance agreement is cancelled before the end of the term. TTR now answers these questions across all states.

Finally, technology industry leaders requested guidance in the area of nexus (a connection with a state that triggers a tax collection obligation). Emerging technologies allow companies to access computers from outside the state to repair and install software. Tax professionals need to know whether an out-of-state vendor has nexus when that vendor:

  • Services a computer remotely from outside the state;
  • Hires a third-party service provider to access a computer remotely from outside the state;
  • Hires a third-party service provider (with an unrelated in-state physical presence) to access a computer remotely from outside the state; or
  • Has a third-party service provider travel in-state to perform installation or maintenance services.

TTR is pleased to provide these additional answers to its software, technology, and cloud computing subscribers.


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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