Effective October 1, 2018, all payments received for cloud computing services, including monthly and annual fees, will be subject to sales tax in Rhode Island. This change is a result of the recently engrossed House Bill 7200. Software as a Service (SaaS) is when a customer has access to a software application that is owned or operated by a vendor. Typically, these types of software solutions are only accessed over the internet and the content cannot be downloaded or transferred to the customer. In the software industry these types of models are often referred to as a form of cloud computing.
Learn more about the taxability of software as service by contact our state and local tax team.
An Arkansas non-profit entity wanted to take donated items and open up a store front in which to sell those items. The revenue generated from this store front was intended to support the non-profit’s rehabilitation center. The Arkansas Department of Finance and Administration Office determined that the revenues from the store front did not meet the definition of a charitable organization and that any and all sales from this location would be taxable.
To learn more, contact a member of our state and local tax team with questions about your sales tax compliance.
A recent decision from the U.S. Supreme Court will have an impact on many out-of-state sellers, including internet retailers. Join us for a special webinar on Thursday, August 2 to discuss what actions states might take next and what steps your business needs to be considering.
Get registered today!