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Indiana Attempts to Clarify Sales Tax Application for SaaS and Cloud-Based Products

Posted 5:00 AM by

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. 

About the Author
Erin Eberly is a partner in Katz, Sapper & Miller’s Business Advisory Group and is co-chair of the Life Sciences and Technology Industry Services Groups. Erin helps clients maximize tax savings opportunities, with a specialization in planning and structuring for partnerships and LLCs. Connect with her on LinkedIn.

 

About the Author
Tim DuVall is a partner in Katz, Sapper & Miller’s Business Advisory Group and is co-chair of the Life Sciences and Technology Industry Services Groups. Tim assists clients in a variety of industries with business, tax, and accounting strategies that help grow their bottom line. Connect with him on LinkedIn.

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