Kentucky Software As A Service Sales Tax. Dont risk being non-compliant. The what type of product the how delivery method and the where in which state or district all factor into the way your products are categorized in terms of software taxability.
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Do you have economic nexus in Kentucky. Software accessed via cloud. If customers are not receiving anything tangible as part of a transaction they must states posit instead be receiving a service provided by remotely accessed software subscriptions.
Sales Tax is imposed on the gross receipts derived from both retail sales of tangible personal property digital property and sales of certain services in Kentucky.
According to Criminal Defense Lawyer a failure to pay state sales taxes can result in sales tax evasion fines and even jail time. In 2004 Kentucky tax law was amended to include prewritten computer software as tangible personal property. While Kentuckys sales tax generally applies to most transactions certain items have special treatment in many states when it comes to sales taxes. The use tax is a back stop for sales tax and generally applies to property purchased outside the state for storage use or consumption within the state.
