- Sale of DNA testing with online report access is considered taxable software in Rhode Island.
- Distinguishing between taxable software and nontaxable services with software use is challenging.
- Rhode Island ruling impacts sales tax treatment of services with online software access.
- Over 20 states tax vendor-hosted software accessed remotely, known as SaaS.
- Not all online services should be treated as taxable software.
- Tennessee taxes use of software accessed remotely but exempts certain services.
- Determining taxable software vs. nontaxable service involves state-specific guidance.
- Rhode Island ruling addressed DNA testing services as taxable software.
- Taxpayer provides ancestral and health reports based on DNA analysis.
- Customers use a kit to collect saliva, which is analyzed to generate reports.
Source: aprio.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.
