VATupdate

Share this post on

New York Court Confirms SaaS Platform Fees Are Taxable as Prewritten Software

  • A New York appellate court ruled that SaaS platform fees are taxable as prewritten software, even if bundled with services.
  • Delivering software via SaaS does not exempt it from sales tax; configuration/customization does not make it “custom” for tax purposes.
  • The ruling confirms that charging for online platform access is taxable, regardless of how it’s labeled or bundled.
  • SaaS providers and tech-enabled service companies with New York customers must review and ensure proper sales tax treatment.
  • TaxCloud automatically applies these rules for New York, helping sellers comply.

Source: taxcloud.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.



Sponsors:

Pincvision

Advertisements: