Sales and Use Tax for Cloud Computing, Software, Apps, and Other Digital Products and Services

States' sales and use taxes applied to sales of web-accessed and downloaded digital products and services are dynamic and complex for corporate sales tax professionals. Buyers and sellers must confront and navigate inconsistencies among states' tax treatment of cloud-based goods and services.

States vary considerably on whether cloud-based software, data, or applications are subject to sales and use tax. While there is a general distinction between the treatment of prewritten software and other digital products, there is no consensus among U.S. jurisdictions on whether cloud-based goods or services are taxable. States facing revenue shortfalls seek to extend their sales tax jurisdiction to products accessed via the cloud.

Several state and local jurisdictions impose tax on digital purchases either through existing or digital-specific tax laws. To ensure compliance, tax staff must stay abreast of myriad state laws, policies, sourcing rules, and taxation.

Listen as our panel of veteran tax advisers suggests tactics for fine-tuning your company's sales and use tax compliance and planning in response to the dynamic and varying treatment of digital products and services by state tax authorities.

I. State-by-state legislative and administrative update

II. An overview of state laws

III. Recent developments as states seek to extend sales and use tax jurisdiction

IV. Sourcing and nexus with digital transactions

A. Sourcing digital purchases and conflicting state approaches

B. Nexus: How do digital purchases impact click-through nexus?

V. Cloud computing and other problematic products and services

The panel will review these and other key issues:

• States' varying approaches to sales tax for digital products and services
• How the SSTP addresses sales of digital products and services
• States' recent guidance and legislation
• How digital transactions are taxed in specific jurisdictions

Learning Objectives

After completing this course, you will be able to:

• Identify recent changes in states' approaches to imposing sales and use tax on goods and services downloaded via the cloud
• Recognize various states' sales and use tax approaches to downloading prepackaged or licensed software
• Discern trends of states seeking to expand sales tax jurisdiction over click-through and cloud services
• Determine compliance tactics and approaches to sourcing digital sales or purchases

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

  
  

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.