The development and deployment of new technologies has led to an evolution in the delivery of health care products and services. In particular, health care providers and others increasingly use cloud-based software applications and other technologies accessed remotely through web browsers or applications.
The purchase and use of these new digital technologies has led to uncertainties under sales and use tax regimes, which traditionally have distinguished between the taxable sale of physical tangible property and the nontaxable sale of services. The sale of a cloud-based software application used to deliver services, for example, complicates the traditional distinction between the sale of software and services.
Source: disputingtax.com
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