- The Kentucky Department of Revenue’s Sales Tax Facts newsletter for Winter 2025-2026 states that sales tax applies to “prewritten computer software” and “prewritten computer software access services,” including those with AI components.
- The newsletter clarifies that sales tax in Kentucky applies to AI-powered applications regardless of whether they are delivered as downloads or accessed via Software as a Service (SaaS).
- It emphasizes that AI features that adapt based on user data do not qualify as custom software and remain fully taxable, as they do not meet the criteria for exemption.
Source Deloitte
Latest Posts in "United States"
- Missouri Sales Tax Applies to Online Sales of Novel Medical Equipment Kits to Physicians’ Offices
- New Texas Appeals Court’s First Sales Tax Ruling Threatens Comptroller’s Data Processing Rule Amendments
- Illinois Updates Sales Tax Nexus Rules for 2026: Key Changes for Retailers and Service Providers
- Centralizing Louisiana’s Sales Tax Collection: Simplifying Compliance and Boosting State Competitiveness
- Consequences for U.K. Businesses Missing U.S. Sales Tax Registration and Exceeding Nexus Thresholds
