Tennessee Rules Mobile Healthcare Subscriptions Taxable When Software Access Is Primary Purpose

• Tennessee ruled that subscription fees for mobile healthcare solutions are taxable if the main purpose is access to remotely accessed software.
• Bundled subscriptions containing both taxable (software, devices) and nontaxable (medical services) components are fully taxable unless nontaxable portions are clearly separated.
• Medical services by licensed professionals remain exempt from sales tax, but related software and digital platforms are not automatically exempt.
• Businesses must carefully structure and document their offerings to distinguish taxable and nontaxable components and ensure compliance.

Source: salestaxinstitute.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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