Pennsylvania Issues Revised Ruling on Sales Tax Treatment of Software-Related Services, Creating a Refund Opportunity for Some Taxpayers
Last week, the Pennsylvania Department of Revenue issued a revised version of a previously issued letter ruling (Letter Ruling SUT-17-001) on the sales tax treatment of software support services. Although the revised ruling narrows some of the overly broad positions on taxability of support services taken by the Department in the original version of the ruling, the Department continues to interpret the sales tax statute to allow the imposition of tax on various support services, such as IT help desk services. Many taxpayers that are charged sales tax by their vendors based on the Department positions reflected in the revised ruling will have refund opportunities.
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