Software As A Service Ny Sales Tax. For registration information see Tax Bulletin TB-ST-360 How to Register for New York State Sales Tax. Company A has offices in California New Jersey and New York and enters into an agreement to license cloud-based software.
Learn more about how sales tax applies to software. Software as a service SaaS is a model where software is hosted in one place but licensed by subscription for use by customers. A recent New York State tax bulletin offers a valuable reminder that many states consider software as a service SaaS and other cloud services charges to be sales revenues subject to state sales tax.
A recent New York State Advisory Opinion provides some insight into how the state analyzes transactions involving software to determine if a sale is subject to sales tax as software as a service SaaS or should instead be treated as a nontaxable service.
Therefore if a purchaser has employees who use the software located both in and outside of New York State the seller of the software should collect tax based on the portion of the receipt attributable to the users located in New York TB-ST-128 Aug. Like SaaS sales tax can also be tricky especially when youre trying to figure out when and where your services are liable to sales tax. Parking services in New York City. Learn more about how sales tax applies to software.
