Effective July 1, 2015, Tennessee will begin imposing its sales tax on remotely accessed software (i.e., software-as-a-service). The taxability of software-as-a-service, also known as SaaS, is a developing tread across the nation, as software providers continue to expand their product offerings over the cloud. Other states that impose a sales tax on remotely accessed software include Indiana, New York, Texas, Utah, and Washington.
Under Tennessee’s prior sales tax rules, accessing software remotely from Tennessee was not considered a taxable sale because the user did not actually download the application being accessed. The new rule, enacted by the Revenue …read more
Read more here:: Technology