Knowledge Center

  • RSS Feed
  • Contact
  • Print

KNOWLEDGE CENTER >

Changes to Massachusetts Sales and Use Tax on Computer and Software Services Law Effective July 31, 2013

August 14, 2013

Kevin D. Fontana, CPA, MSA, MST
Tax Manager


Effective July 31, 2013, pursuant to newly enacted legislation, An Act Relative to Transportation Finance, St. 2013, c. 46 (the Act), Chapters 64H and 64I of the Massachusetts General Laws, have been amended to apply the sales and use tax to certain services relating to (1) computer system design and (2) the modification, integration, enhancement, installation or configuration of standardized or prewritten software.  As a result, the Massachusetts Department of Revenue (DOR) recently issued Technical Information Release 13-10 to provide initial guidance regarding these statutory changes, the applicable sourcing rules, transition rules for existing contracts, electronic filing requirements, calculation of use tax liability, the effective date and its impact on filings and payments.


Please click here for more information >> 
 

In addition, a DOR website page dedicated to providing information on the recent tax changes, including a series of FAQs, may be accessed at www.mass.gov/dor/newtaxinfo.

Further guidance regarding the scope of the sales and use tax on computer and software services was recently issued in the form of a working draft TIR..  This is intended to supplement the above-noted TIR and FAQ’s.

 

 

Disclaimer: Under U.S. Treasury Department guidelines, we hereby inform you that (1) any tax advice contained in this communication is not intended or written to be used, and cannot be used by you, for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service (or state and local or other tax authorities), and (2) no part of any tax advice contained in this communication is intended to be used, and cannot be used, by any party to promote, market or recommend any transaction or tax-related matter(s) addressed herein without the express and written consent of Blum, Shapiro & Company, P.C.
 

 

Advisors | Auditors | Consultants | CPAs - Blum Shapiro is one of the premier public accounting firms in the northeast and a Top 100 CPA Firm in the U.S. Our professionals serve businesses, individuals and organizations in Boston (MA), Hartford (CT), Cranston (RI), Shelton (CT) ,Quincy (MA) and Newton (MA) with audit, tax and business consulting services. Our firm has developed practice areas in automotive, construction, education, government, healthcare, hospitality, manufacturing, nonprofit organizations and professional service firms. New Haven CT, Fairfield CT, Norwalk CT, Waterbury CT.