Tax & Accounting Blog

Indiana Updates Sales Tax Information Bulletins

Indirect Tax, ONESOURCE, Sales and Use Tax November 21, 2011

The Indiana Department of Revenue updated several of their Sales Tax Information Bulletins this month including Bulletin #8. Bulletin #8, which has undergone substantial changes, discusses the application of Sales Tax to the sale, lease or use of computer hardware, computer software, and digital goods. New to this version is an explanation of the state’s position of the application of the tax to cloud computing.

According to the Department of Revenue “prewritten software maintained on servers outside of Indiana also is subject to tax when accessed electronically via the Internet” because customers gain constructive possession of the software. This constitutes a transfer of tangible personal property.

Other Information Bulletins updated cover the application of sales tax to extended warranties as well as to photography.

 

See the Department’s website for a complete list of updates: http://www.in.gov/dor/3650.htm