The Indiana Department of Revenue recently updated Information Bulletin #8, “Application of Sales Tax to the Sale, Lease, or Use of Computer Hardware, Computer Software, and Digital Goods.”
The original bulletin, which had not been updated since 2011, outlines the sales and use tax policy on the sale, lease, or use of computer hardware, computer software, and digital goods. In the revised bulletin, the IDOR attempts to update its guidance on SaaS and cloud-based software products – specifically, when they are subject to Indiana sales or use tax.
Although the bulletin makes some strides in addressing the SaaS/cloud-based product issue, there are still unanswered questions as to how the bulletin will be interpreted when applied to a taxpayer’s facts.
Despite the uncertainty of application, visit http://www.in.gov/dor/reference/files/sib08.pdf to see how the IDOR is trying to better define this area.
Please don’t hesitate to contact your KSM advisor with any questions.