Kansas Addresses Sales Taxation of Cloud Computing

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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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