Kansas Addresses Sales Taxation of Cloud Computing | AccountingWEB

Kansas Addresses Sales Taxation of Cloud Computing

According to a recent Kansas Department of Revenue Opinion Letter, charges imposed by an application service provider (ASP) on subscribers for "software as a service" (SaaS) for the use of software hosted on the ASP’s remote servers were NOT taxable for sales tax purposes.

The software was accessed via the Internet. No software was downloaded or delivered to the customer and no title to the software passed to the customers.

Opinion Letter No. O-2012-001, Kansas Department of Revenue, February 6, 2012

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website: www.leveragestateandlocaltax.com

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