- Tennessee Department of Revenue ruled that subscription fees for a health app are subject to sales tax because the primary purpose is access to software.
- The subscription includes a mobile app for health tracking, an FDA-approved Bluetooth blood pressure monitor, and technical support.
- The app is not customized for users and offers various health monitoring features.
- Even though services are generally exempt, sales tax applies when the main transaction is for software access.
- Businesses must carefully structure and document their offerings to determine and support the division between taxable and non-taxable items.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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