Software Sales Tax Massachusetts. While Massachusetts sales tax generally applies to most transactions certain items have special treatment in many states when it comes to sales taxes. 3 If standardized software was delivered in tangible form such as a CD-ROM or a floppy disk it was subject to tax.
Sales tax is reported in a journal entry. Instead states tax some kinds of software and exempt others based on whether it is customized or off-the-shelf and whether it is on CD or downloaded all silly distinctions for. The Massachusetts use tax is 625 of the sales price or rental charge on tangible personal property including phone and mail order items or items purchased over the Internet and electronically transferred software or certain telecommunications services.
Sales Tax and SaaS Accounting.
Sales tax treatment of software is the subject of this weeks map. 2 Prior to 2005 whether standardized software was considered tangible personal property and subject to sales or use tax depended on its method of delivery. Its frustratingly complex and a drain on resources. Although the holding is limited to sales tax the Courts rationale could have corporate income tax and local property tax implications.