Software As A Service Taxable In New York. This bulletin explains how sales tax applies to sales of computer software and related services. 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.
Many states have considered canned software to be taxable software. Meanwhile because custom software is software that is created specifically for a particular customer it is generally not considered taxable software as a result. 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.
With software taxability generally depends on whether the software is canned or custom downloaded or delivered on tangible personal property or software as a service SaaS.
With software taxability generally depends on whether the software is canned or custom downloaded or delivered on tangible personal property or software as a service SaaS. Electronically downloaded software is also considered taxable because the state defines it as tangible personal property. Instead custom software may be deemed either a taxable or nontaxable service. Is computer software subject to New York State sales tax.